Correlation Between Microsoft and Nordea Invest
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By analyzing existing cross correlation between Microsoft and Nordea Invest Global, 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
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Microsoft and Nordea is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Nordea Invest Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global 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 Global 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 1.25 times more return on investment than Nordea Invest. However, Microsoft is 1.25 times more volatile than Nordea Invest Global. It trades about 0.1 of its potential returns per unit of risk. Nordea Invest Global is currently generating about 0.05 per unit of risk. If you would invest 23,595 in Microsoft on September 20, 2024 and sell it today you would earn a total of 21,851 from holding Microsoft or generate 92.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.41% |
| Values | Daily Returns |
Microsoft vs. Nordea Invest Global
Performance |
| Timeline |
| Microsoft |
| Nordea Invest Global |
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. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta | Microsoft vs. Nextnav Acquisition Corp |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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