Correlation Between Mogo and Microsoft
Can any of the company-specific risk be diversified away by investing in both Mogo 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 Mogo and Microsoft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mogo Inc and Microsoft, you can compare the effects of market volatilities on Mogo 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 Mogo with a short position of Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mogo and Microsoft.
Diversification Opportunities for Mogo and Microsoft
Good diversification
The 3 months correlation between Mogo and Microsoft is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Mogo Inc and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft and Mogo 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 Mogo Inc 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 Mogo i.e., Mogo and Microsoft go up and down completely randomly.
Pair Corralation between Mogo and Microsoft
Given the investment horizon of 90 days Mogo Inc is expected to generate 4.41 times more return on investment than Microsoft. However, Mogo is 4.41 times more volatile than Microsoft. It trades about 0.28 of its potential returns per unit of risk. Microsoft is currently generating about -0.04 per unit of risk. If you would invest 99.00 in Mogo Inc on August 28, 2024 and sell it today you would earn a total of 48.00 from holding Mogo Inc or generate 48.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mogo Inc vs. Microsoft
Performance |
| Timeline |
| Mogo Inc |
| Microsoft |
Mogo and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mogo and Microsoft
The main advantage of trading using opposite Mogo and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mogo 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.| Mogo vs. Katapult Holdings Equity | Mogo vs. International Money Express | Mogo vs. Bakkt Holdings | Mogo vs. Kaltura |
| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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