Correlation Between Oakley Capital and Microsoft
Can any of the company-specific risk be diversified away by investing in both Oakley Capital and Microsoft at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Oakley Capital and Microsoft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakley Capital Investments and Microsoft, you can compare the effects of market volatilities on Oakley Capital and Microsoft 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 Oakley Capital with a short position of Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakley Capital and Microsoft.
Diversification Opportunities for Oakley Capital and Microsoft
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oakley and Microsoft is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Oakley Capital Investments and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft and Oakley Capital 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 Oakley Capital Investments are associated (or correlated) with Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Oakley Capital i.e., Oakley Capital and Microsoft go up and down completely randomly.
Pair Corralation between Oakley Capital and Microsoft
Assuming the 90 days trading horizon Oakley Capital is expected to generate 5.88 times less return on investment than Microsoft. In addition to that, Oakley Capital is 1.48 times more volatile than Microsoft. It trades about 0.04 of its total potential returns per unit of risk. Microsoft is currently generating about 0.35 per unit of volatility. If you would invest 42,018 in Microsoft on September 13, 2024 and sell it today you would earn a total of 2,982 from holding Microsoft or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakley Capital Investments vs. Microsoft
Performance |
| Timeline |
| Oakley Capital Inves |
| Microsoft |
Oakley Capital and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakley Capital and Microsoft
The main advantage of trading using opposite Oakley Capital and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakley Capital position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| Oakley Capital vs. Spirent Communications plc | Oakley Capital vs. European Metals Holdings | Oakley Capital vs. Zegona Communications Plc | Oakley Capital vs. mobilezone holding AG |
| Microsoft vs. Samsung Electronics Co | Microsoft vs. Samsung Electronics Co | Microsoft vs. Hyundai Motor | Microsoft vs. Reliance Industries Ltd |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |