Correlation Between Microsoft and Beijing SuperMap
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By analyzing existing cross correlation between Microsoft and Beijing SuperMap Software, you can compare the effects of market volatilities on Microsoft and Beijing SuperMap 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 Beijing SuperMap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Beijing SuperMap.
Diversification Opportunities for Microsoft and Beijing SuperMap
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Beijing is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Beijing SuperMap Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SuperMap Software 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 Beijing SuperMap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SuperMap Software has no effect on the direction of Microsoft i.e., Microsoft and Beijing SuperMap go up and down completely randomly.
Pair Corralation between Microsoft and Beijing SuperMap
Given the investment horizon of 90 days Microsoft is expected to generate 30.56 times less return on investment than Beijing SuperMap. But when comparing it to its historical volatility, Microsoft is 3.2 times less risky than Beijing SuperMap. It trades about 0.01 of its potential returns per unit of risk. Beijing SuperMap Software is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,390 in Beijing SuperMap Software on September 3, 2024 and sell it today you would earn a total of 441.00 from holding Beijing SuperMap Software or generate 31.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.8% |
| Values | Daily Returns |
Microsoft vs. Beijing SuperMap Software
Performance |
| Timeline |
| Microsoft |
| Beijing SuperMap Software |
Microsoft and Beijing SuperMap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Beijing SuperMap
The main advantage of trading using opposite Microsoft and Beijing SuperMap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Beijing SuperMap 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 Beijing SuperMap will offset losses from the drop in Beijing SuperMap's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Beijing SuperMap vs. Tsingtao Brewery Co | Beijing SuperMap vs. Panda Financial Holding | Beijing SuperMap vs. Qilu Bank Co | Beijing SuperMap vs. HeNan Splendor Science |
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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