Correlation Between 594918CB8 and SFL
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By analyzing existing cross correlation between MICROSOFT P 45 and SFL Corporation, you can compare the effects of market volatilities on 594918CB8 and SFL 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 594918CB8 with a short position of SFL. Check out your portfolio center. Please also check ongoing floating volatility patterns of 594918CB8 and SFL.
Diversification Opportunities for 594918CB8 and SFL
Very weak diversification
The 3 months correlation between 594918CB8 and SFL is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding MICROSOFT P 45 and SFL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFL Corporation and 594918CB8 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 P 45 are associated (or correlated) with SFL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFL Corporation has no effect on the direction of 594918CB8 i.e., 594918CB8 and SFL go up and down completely randomly.
Pair Corralation between 594918CB8 and SFL
Assuming the 90 days trading horizon MICROSOFT P 45 is expected to generate 0.87 times more return on investment than SFL. However, MICROSOFT P 45 is 1.15 times less risky than SFL. It trades about 0.17 of its potential returns per unit of risk. SFL Corporation is currently generating about -0.07 per unit of risk. If you would invest 9,343 in MICROSOFT P 45 on August 29, 2024 and sell it today you would earn a total of 432.00 from holding MICROSOFT P 45 or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
MICROSOFT P 45 vs. SFL Corp.
Performance |
| Timeline |
| MICROSOFT P 45 |
| SFL Corporation |
594918CB8 and SFL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 594918CB8 and SFL
The main advantage of trading using opposite 594918CB8 and SFL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 594918CB8 position performs unexpectedly, SFL 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 SFL will offset losses from the drop in SFL's long position.| 594918CB8 vs. SFL Corporation | 594918CB8 vs. Peoples Educational Holdings | 594918CB8 vs. WEBTOON Entertainment Common | 594918CB8 vs. Electrovaya Common Shares |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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