Correlation Between Microsoft and Bengang Steel
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By analyzing existing cross correlation between Microsoft and Bengang Steel Plates, you can compare the effects of market volatilities on Microsoft and Bengang Steel 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 Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Bengang Steel.
Diversification Opportunities for Microsoft and Bengang Steel
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Bengang is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Bengang Steel Plates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bengang Steel Plates 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 Bengang Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bengang Steel Plates has no effect on the direction of Microsoft i.e., Microsoft and Bengang Steel go up and down completely randomly.
Pair Corralation between Microsoft and Bengang Steel
Given the investment horizon of 90 days Microsoft is expected to generate 0.53 times more return on investment than Bengang Steel. However, Microsoft is 1.88 times less risky than Bengang Steel. It trades about 0.06 of its potential returns per unit of risk. Bengang Steel Plates is currently generating about 0.0 per unit of risk. If you would invest 32,302 in Microsoft on September 1, 2024 and sell it today you would earn a total of 10,044 from holding Microsoft or generate 31.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.24% |
| Values | Daily Returns |
Microsoft vs. Bengang Steel Plates
Performance |
| Timeline |
| Microsoft |
| Bengang Steel Plates |
Microsoft and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Bengang Steel
The main advantage of trading using opposite Microsoft and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Bengang Steel 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 Bengang Steel will offset losses from the drop in Bengang Steel's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Bengang Steel vs. Gome Telecom Equipment | Bengang Steel vs. Shenzhen Kexin Communication | Bengang Steel vs. Wuhan Yangtze Communication | Bengang Steel vs. Sportsoul 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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