Correlation Between Microsoft and CSIF I
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By analyzing existing cross correlation between Microsoft and CSIF I Real, you can compare the effects of market volatilities on Microsoft and CSIF I 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 CSIF I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and CSIF I.
Diversification Opportunities for Microsoft and CSIF I
Very weak diversification
The 3 months correlation between Microsoft and CSIF is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and CSIF I Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF I Real 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 CSIF I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSIF I Real has no effect on the direction of Microsoft i.e., Microsoft and CSIF I go up and down completely randomly.
Pair Corralation between Microsoft and CSIF I
Given the investment horizon of 90 days Microsoft is expected to generate 2.1 times more return on investment than CSIF I. However, Microsoft is 2.1 times more volatile than CSIF I Real. It trades about 0.09 of its potential returns per unit of risk. CSIF I Real is currently generating about 0.06 per unit of risk. If you would invest 23,866 in Microsoft on October 13, 2024 and sell it today you would earn a total of 18,029 from holding Microsoft or generate 75.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Microsoft vs. CSIF I Real
Performance |
| Timeline |
| Microsoft |
| CSIF I Real |
Microsoft and CSIF I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and CSIF I
The main advantage of trading using opposite Microsoft and CSIF I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, CSIF I 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 CSIF I will offset losses from the drop in CSIF I's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| CSIF I vs. Procimmo Real Estate | CSIF I vs. SPDR Dow Jones | CSIF I vs. Baloise Holding AG | CSIF I vs. Autoneum Holding AG |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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