Correlation Between Microsoft and Beijing Mainstreets
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By analyzing existing cross correlation between Microsoft and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Microsoft and Beijing Mainstreets 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 Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Beijing Mainstreets.
Diversification Opportunities for Microsoft and Beijing Mainstreets
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Microsoft and Beijing is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets 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 Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Microsoft i.e., Microsoft and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Microsoft and Beijing Mainstreets
Given the investment horizon of 90 days Microsoft is expected to generate 0.29 times more return on investment than Beijing Mainstreets. However, Microsoft is 3.44 times less risky than Beijing Mainstreets. It trades about 0.06 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.02 per unit of risk. If you would invest 32,151 in Microsoft on August 31, 2024 and sell it today you would earn a total of 10,195 from holding Microsoft or generate 31.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.99% |
| Values | Daily Returns |
Microsoft vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Microsoft |
| Beijing Mainstreets |
Microsoft and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Beijing Mainstreets
The main advantage of trading using opposite Microsoft and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Beijing Mainstreets vs. Kweichow Moutai Co | Beijing Mainstreets vs. Contemporary Amperex Technology | Beijing Mainstreets vs. G bits Network Technology | Beijing Mainstreets vs. BYD Co Ltd |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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