Correlation Between Microsoft and FRESLN
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By analyzing existing cross correlation between Microsoft and FRESLN 425 02 OCT 50, you can compare the effects of market volatilities on Microsoft and FRESLN 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 FRESLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and FRESLN.
Diversification Opportunities for Microsoft and FRESLN
Weak diversification
The 3 months correlation between Microsoft and FRESLN is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and FRESLN 425 02 OCT 50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRESLN 425 02 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 FRESLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRESLN 425 02 has no effect on the direction of Microsoft i.e., Microsoft and FRESLN go up and down completely randomly.
Pair Corralation between Microsoft and FRESLN
Given the investment horizon of 90 days Microsoft is expected to generate 5.15 times less return on investment than FRESLN. But when comparing it to its historical volatility, Microsoft is 1.58 times less risky than FRESLN. It trades about 0.08 of its potential returns per unit of risk. FRESLN 425 02 OCT 50 is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 7,116 in FRESLN 425 02 OCT 50 on October 26, 2024 and sell it today you would earn a total of 297.00 from holding FRESLN 425 02 OCT 50 or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.89% |
| Values | Daily Returns |
Microsoft vs. FRESLN 425 02 OCT 50
Performance |
| Timeline |
| Microsoft |
| FRESLN 425 02 |
Microsoft and FRESLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and FRESLN
The main advantage of trading using opposite Microsoft and FRESLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, FRESLN 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 FRESLN will offset losses from the drop in FRESLN's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. BLOCK INC | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings |
| FRESLN vs. Douglas Emmett | FRESLN vs. Southern Home Medicl | FRESLN vs. Biglari Holdings | FRESLN vs. Taylor Morn Home |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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