Correlation Between Microsoft and NIGERIAN EXCHANGE
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By analyzing existing cross correlation between Microsoft and NIGERIAN EXCHANGE GROUP, you can compare the effects of market volatilities on Microsoft and NIGERIAN EXCHANGE 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 NIGERIAN EXCHANGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and NIGERIAN EXCHANGE.
Diversification Opportunities for Microsoft and NIGERIAN EXCHANGE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and NIGERIAN is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and NIGERIAN EXCHANGE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGERIAN EXCHANGE 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 NIGERIAN EXCHANGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGERIAN EXCHANGE has no effect on the direction of Microsoft i.e., Microsoft and NIGERIAN EXCHANGE go up and down completely randomly.
Pair Corralation between Microsoft and NIGERIAN EXCHANGE
Given the investment horizon of 90 days Microsoft is expected to generate 1.82 times less return on investment than NIGERIAN EXCHANGE. But when comparing it to its historical volatility, Microsoft is 2.45 times less risky than NIGERIAN EXCHANGE. It trades about 0.05 of its potential returns per unit of risk. NIGERIAN EXCHANGE GROUP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,112 in NIGERIAN EXCHANGE GROUP on September 2, 2024 and sell it today you would earn a total of 398.00 from holding NIGERIAN EXCHANGE GROUP or generate 18.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Microsoft vs. NIGERIAN EXCHANGE GROUP
Performance |
| Timeline |
| Microsoft |
| NIGERIAN EXCHANGE |
Microsoft and NIGERIAN EXCHANGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and NIGERIAN EXCHANGE
The main advantage of trading using opposite Microsoft and NIGERIAN EXCHANGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, NIGERIAN EXCHANGE 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 NIGERIAN EXCHANGE will offset losses from the drop in NIGERIAN EXCHANGE'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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