Correlation Between Microsoft and Krida Jaringan
Can any of the company-specific risk be diversified away by investing in both Microsoft and Krida Jaringan 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 Microsoft and Krida Jaringan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Krida Jaringan Nusantara, you can compare the effects of market volatilities on Microsoft and Krida Jaringan 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 Krida Jaringan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Krida Jaringan.
Diversification Opportunities for Microsoft and Krida Jaringan
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Krida is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Krida Jaringan Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Krida Jaringan Nusantara 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 Krida Jaringan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Krida Jaringan Nusantara has no effect on the direction of Microsoft i.e., Microsoft and Krida Jaringan go up and down completely randomly.
Pair Corralation between Microsoft and Krida Jaringan
Given the investment horizon of 90 days Microsoft is expected to generate 0.54 times more return on investment than Krida Jaringan. However, Microsoft is 1.84 times less risky than Krida Jaringan. It trades about 0.05 of its potential returns per unit of risk. Krida Jaringan Nusantara is currently generating about -0.09 per unit of risk. If you would invest 43,048 in Microsoft on September 16, 2024 and sell it today you would earn a total of 1,679 from holding Microsoft or generate 3.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
Microsoft vs. Krida Jaringan Nusantara
Performance |
Timeline |
Microsoft |
Krida Jaringan Nusantara |
Microsoft and Krida Jaringan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and Krida Jaringan
The main advantage of trading using opposite Microsoft and Krida Jaringan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Krida Jaringan 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 Krida Jaringan will offset losses from the drop in Krida Jaringan's long position.Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta | Microsoft vs. Nextnav Acquisition Corp |
Krida Jaringan vs. PT Trimuda Nuansa | Krida Jaringan vs. Satria Antaran Prima | Krida Jaringan vs. Guna Timur Raya | Krida Jaringan vs. Kioson Komersial Indonesia |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |