Correlation Between Microsoft and Nordea Invest
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By analyzing existing cross correlation between Microsoft and Nordea Invest Basis, you can compare the effects of market volatilities on Microsoft and Nordea 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Nordea Invest.
Diversification Opportunities for Microsoft and Nordea Invest
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Microsoft and Nordea is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Nordea Invest Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Basis 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Basis has no effect on the direction of Microsoft i.e., Microsoft and Nordea Invest go up and down completely randomly.
Pair Corralation between Microsoft and Nordea Invest
Given the investment horizon of 90 days Microsoft is expected to generate 2.79 times more return on investment than Nordea Invest. However, Microsoft is 2.79 times more volatile than Nordea Invest Basis. It trades about 0.19 of its potential returns per unit of risk. Nordea Invest Basis is currently generating about 0.16 per unit of risk. If you would invest 42,483 in Microsoft on October 29, 2024 and sell it today you would earn a total of 1,923 from holding Microsoft or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Microsoft vs. Nordea Invest Basis
Performance |
| Timeline |
| Microsoft |
| Nordea Invest Basis |
Microsoft and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Nordea Invest
The main advantage of trading using opposite Microsoft and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Nordea 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. BLOCK INC | Microsoft vs. Adobe Systems Incorporated |
| Nordea Invest vs. Novo Nordisk AS | Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. DSV Panalpina AS | Nordea Invest vs. AP Mller |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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