Correlation Between Microsoft and Guangzhou Jinyi
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By analyzing existing cross correlation between Microsoft and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Microsoft and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Guangzhou Jinyi.
Diversification Opportunities for Microsoft and Guangzhou Jinyi
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and Guangzhou is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Microsoft i.e., Microsoft and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Microsoft and Guangzhou Jinyi
Given the investment horizon of 90 days Microsoft is expected to generate 0.42 times more return on investment than Guangzhou Jinyi. However, Microsoft is 2.36 times less risky than Guangzhou Jinyi. It trades about 0.1 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.0 per unit of risk. If you would invest 22,130 in Microsoft on August 28, 2024 and sell it today you would earn a total of 19,749 from holding Microsoft or generate 89.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.8% |
| Values | Daily Returns |
Microsoft vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Microsoft |
| Guangzhou Jinyi Media |
Microsoft and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Guangzhou Jinyi
The main advantage of trading using opposite Microsoft and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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