Correlation Between Microsoft and ICEX Main
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By analyzing existing cross correlation between Microsoft and ICEX Main, you can compare the effects of market volatilities on Microsoft and ICEX Main 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 ICEX Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and ICEX Main.
Diversification Opportunities for Microsoft and ICEX Main
Good diversification
The 3 months correlation between Microsoft and ICEX is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and ICEX Main in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICEX Main 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 ICEX Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICEX Main has no effect on the direction of Microsoft i.e., Microsoft and ICEX Main go up and down completely randomly.
Pair Corralation between Microsoft and ICEX Main
Given the investment horizon of 90 days Microsoft is expected to generate 1.35 times more return on investment than ICEX Main. However, Microsoft is 1.35 times more volatile than ICEX Main. It trades about 0.09 of its potential returns per unit of risk. ICEX Main is currently generating about 0.03 per unit of risk. If you would invest 31,884 in Microsoft on September 12, 2024 and sell it today you would earn a total of 12,992 from holding Microsoft or generate 40.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. ICEX Main
Performance |
| Timeline |
Microsoft and ICEX Main Volatility Contrast
Predicted Return Density |
| Returns |
Microsoft
Pair trading matchups for Microsoft
ICEX Main
Pair trading matchups for ICEX Main
Pair Trading with Microsoft and ICEX Main
The main advantage of trading using opposite Microsoft and ICEX Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, ICEX Main 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 ICEX Main will offset losses from the drop in ICEX Main's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| ICEX Main vs. Icelandair Group hf | ICEX Main vs. Arion banki hf | ICEX Main vs. slandsbanki hf | ICEX Main vs. Alvotech |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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