Correlation Between Microsoft and Maj Invest
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By analyzing existing cross correlation between Microsoft and Maj Invest Glob, you can compare the effects of market volatilities on Microsoft and Maj Invest and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Microsoft with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Maj Invest.
Diversification Opportunities for Microsoft and Maj Invest
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Maj is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Maj Invest Glob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Glob and Microsoft is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Microsoft are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Glob has no effect on the direction of Microsoft i.e., Microsoft and Maj Invest go up and down completely randomly.
Pair Corralation between Microsoft and Maj Invest
Given the investment horizon of 90 days Microsoft is expected to under-perform the Maj Invest. In addition to that, Microsoft is 1.58 times more volatile than Maj Invest Glob. It trades about -0.01 of its total potential returns per unit of risk. Maj Invest Glob is currently generating about 0.1 per unit of volatility. If you would invest 12,850 in Maj Invest Glob on August 25, 2024 and sell it today you would earn a total of 1,390 from holding Maj Invest Glob or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.45% |
| Values | Daily Returns |
Microsoft vs. Maj Invest Glob
Performance |
| Timeline |
| Microsoft |
| Maj Invest Glob |
Microsoft and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Maj Invest
The main advantage of trading using opposite Microsoft and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Maj Invest can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Maj Invest will offset losses from the drop in Maj Invest's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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