Correlation Between Microsoft and Amundi Physical
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By analyzing existing cross correlation between Microsoft and Amundi Physical Gold, you can compare the effects of market volatilities on Microsoft and Amundi Physical 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 Amundi Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Amundi Physical.
Diversification Opportunities for Microsoft and Amundi Physical
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Microsoft and Amundi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Amundi Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Physical Gold 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 Amundi Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Physical Gold has no effect on the direction of Microsoft i.e., Microsoft and Amundi Physical go up and down completely randomly.
Pair Corralation between Microsoft and Amundi Physical
Assuming the 90 days trading horizon Microsoft is expected to generate 1.65 times more return on investment than Amundi Physical. However, Microsoft is 1.65 times more volatile than Amundi Physical Gold. It trades about 0.11 of its potential returns per unit of risk. Amundi Physical Gold is currently generating about 0.11 per unit of risk. If you would invest 38,264 in Microsoft on September 24, 2024 and sell it today you would earn a total of 3,886 from holding Microsoft or generate 10.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Microsoft vs. Amundi Physical Gold
Performance |
Timeline |
Microsoft |
Amundi Physical Gold |
Microsoft and Amundi Physical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and Amundi Physical
The main advantage of trading using opposite Microsoft and Amundi Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Amundi Physical 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 Amundi Physical will offset losses from the drop in Amundi Physical's long position.Microsoft vs. AUSNUTRIA DAIRY | Microsoft vs. Singapore Airlines Limited | Microsoft vs. Lifeway Foods | Microsoft vs. Nok Airlines PCL |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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