Correlation Between Microsoft and NOMURA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and NOMURA HOLDINGS INC, you can compare the effects of market volatilities on Microsoft and NOMURA 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 NOMURA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and NOMURA.
Diversification Opportunities for Microsoft and NOMURA
Good diversification
The 3 months correlation between Microsoft and NOMURA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and NOMURA HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOMURA HOLDINGS INC 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 NOMURA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOMURA HOLDINGS INC has no effect on the direction of Microsoft i.e., Microsoft and NOMURA go up and down completely randomly.
Pair Corralation between Microsoft and NOMURA
Given the investment horizon of 90 days Microsoft is expected to generate 0.69 times more return on investment than NOMURA. However, Microsoft is 1.45 times less risky than NOMURA. It trades about 0.15 of its potential returns per unit of risk. NOMURA HOLDINGS INC is currently generating about -0.22 per unit of risk. If you would invest 40,955 in Microsoft on September 2, 2024 and sell it today you would earn a total of 1,391 from holding Microsoft or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Microsoft vs. NOMURA HOLDINGS INC
Performance |
| Timeline |
| Microsoft |
| NOMURA HOLDINGS INC |
Microsoft and NOMURA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and NOMURA
The main advantage of trading using opposite Microsoft and NOMURA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, NOMURA 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 NOMURA will offset losses from the drop in NOMURA's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |