Correlation Between Microsoft and Jiangxi Sunshine
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By analyzing existing cross correlation between Microsoft and Jiangxi Sunshine Dairy, you can compare the effects of market volatilities on Microsoft and Jiangxi Sunshine 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 Jiangxi Sunshine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Jiangxi Sunshine.
Diversification Opportunities for Microsoft and Jiangxi Sunshine
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microsoft and Jiangxi is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Jiangxi Sunshine Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Sunshine Dairy 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 Jiangxi Sunshine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Sunshine Dairy has no effect on the direction of Microsoft i.e., Microsoft and Jiangxi Sunshine go up and down completely randomly.
Pair Corralation between Microsoft and Jiangxi Sunshine
Given the investment horizon of 90 days Microsoft is expected to generate 0.62 times more return on investment than Jiangxi Sunshine. However, Microsoft is 1.62 times less risky than Jiangxi Sunshine. It trades about 0.1 of its potential returns per unit of risk. Jiangxi Sunshine Dairy is currently generating about 0.0 per unit of risk. If you would invest 23,313 in Microsoft on September 14, 2024 and sell it today you would earn a total of 21,424 from holding Microsoft or generate 91.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.16% |
| Values | Daily Returns |
Microsoft vs. Jiangxi Sunshine Dairy
Performance |
| Timeline |
| Microsoft |
| Jiangxi Sunshine Dairy |
Microsoft and Jiangxi Sunshine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Jiangxi Sunshine
The main advantage of trading using opposite Microsoft and Jiangxi Sunshine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Jiangxi Sunshine 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 Jiangxi Sunshine will offset losses from the drop in Jiangxi Sunshine's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Jiangxi Sunshine vs. Sinosteel Engineering and | Jiangxi Sunshine vs. Shenwu Energy Saving | Jiangxi Sunshine vs. Ping An Insurance | Jiangxi Sunshine vs. Easyhome New Retail |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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