Correlation Between Microsoft and Oriental Times
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By analyzing existing cross correlation between Microsoft and Oriental Times Media, you can compare the effects of market volatilities on Microsoft and Oriental Times 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 Oriental Times. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Oriental Times.
Diversification Opportunities for Microsoft and Oriental Times
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Oriental is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Oriental Times Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Times Media 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 Oriental Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Times Media has no effect on the direction of Microsoft i.e., Microsoft and Oriental Times go up and down completely randomly.
Pair Corralation between Microsoft and Oriental Times
Given the investment horizon of 90 days Microsoft is expected to under-perform the Oriental Times. But the stock apears to be less risky and, when comparing its historical volatility, Microsoft is 3.4 times less risky than Oriental Times. The stock trades about -0.04 of its potential returns per unit of risk. The Oriental Times Media is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Oriental Times Media on August 25, 2024 and sell it today you would earn a total of 190.00 from holding Oriental Times Media or generate 86.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Microsoft vs. Oriental Times Media
Performance |
| Timeline |
| Microsoft |
| Oriental Times Media |
Microsoft and Oriental Times Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Oriental Times
The main advantage of trading using opposite Microsoft and Oriental Times positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Oriental Times 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 Oriental Times will offset losses from the drop in Oriental Times' long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Oriental Times vs. Industrial and Commercial | Oriental Times vs. China Construction Bank | Oriental Times vs. Agricultural Bank of | Oriental Times vs. Bank of China |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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