Correlation Between Mako Mining and Microsoft Corp
Can any of the company-specific risk be diversified away by investing in both Mako Mining and Microsoft Corp 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 Mako Mining and Microsoft Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Microsoft Corp CDR, you can compare the effects of market volatilities on Mako Mining and Microsoft Corp 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 Mako Mining with a short position of Microsoft Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Microsoft Corp.
Diversification Opportunities for Mako Mining and Microsoft Corp
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mako and Microsoft is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Microsoft Corp CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft Corp CDR and Mako Mining 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 Mako Mining Corp are associated (or correlated) with Microsoft Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft Corp CDR has no effect on the direction of Mako Mining i.e., Mako Mining and Microsoft Corp go up and down completely randomly.
Pair Corralation between Mako Mining and Microsoft Corp
Assuming the 90 days horizon Mako Mining Corp is expected to generate 2.3 times more return on investment than Microsoft Corp. However, Mako Mining is 2.3 times more volatile than Microsoft Corp CDR. It trades about 0.11 of its potential returns per unit of risk. Microsoft Corp CDR is currently generating about 0.12 per unit of risk. If you would invest 304.00 in Mako Mining Corp on October 25, 2024 and sell it today you would earn a total of 37.00 from holding Mako Mining Corp or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Microsoft Corp CDR
Performance |
| Timeline |
| Mako Mining Corp |
| Microsoft Corp CDR |
Mako Mining and Microsoft Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Microsoft Corp
The main advantage of trading using opposite Mako Mining and Microsoft Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining position performs unexpectedly, Microsoft Corp 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 Corp will offset losses from the drop in Microsoft Corp's long position.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| Microsoft Corp vs. Titanium Transportation Group | Microsoft Corp vs. Mako Mining Corp | Microsoft Corp vs. XXIX Metal Corp | Microsoft Corp vs. Blackrock Silver Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |