Correlation Between Microsoft and GLENLN
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By analyzing existing cross correlation between Microsoft and GLENLN 1625 27 APR 26, you can compare the effects of market volatilities on Microsoft and GLENLN 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 GLENLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and GLENLN.
Diversification Opportunities for Microsoft and GLENLN
Good diversification
The 3 months correlation between Microsoft and GLENLN is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and GLENLN 1625 27 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLENLN 1625 27 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 GLENLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLENLN 1625 27 has no effect on the direction of Microsoft i.e., Microsoft and GLENLN go up and down completely randomly.
Pair Corralation between Microsoft and GLENLN
Given the investment horizon of 90 days Microsoft is expected to generate 1.91 times more return on investment than GLENLN. However, Microsoft is 1.91 times more volatile than GLENLN 1625 27 APR 26. It trades about 0.05 of its potential returns per unit of risk. GLENLN 1625 27 APR 26 is currently generating about 0.02 per unit of risk. If you would invest 37,145 in Microsoft on September 3, 2024 and sell it today you would earn a total of 5,953 from holding Microsoft or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.42% |
| Values | Daily Returns |
Microsoft vs. GLENLN 1625 27 APR 26
Performance |
| Timeline |
| Microsoft |
| GLENLN 1625 27 |
Microsoft and GLENLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and GLENLN
The main advantage of trading using opposite Microsoft and GLENLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, GLENLN 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 GLENLN will offset losses from the drop in GLENLN's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| GLENLN vs. Cheniere Energy Partners | GLENLN vs. The Joint Corp | GLENLN vs. Esperion Therapeutics | GLENLN vs. NiSource |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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