Correlation Between Microsoft and BlueFocus Communication
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and BlueFocus Communication Group, you can compare the effects of market volatilities on Microsoft and BlueFocus Communication 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 BlueFocus Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and BlueFocus Communication.
Diversification Opportunities for Microsoft and BlueFocus Communication
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and BlueFocus is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and BlueFocus Communication Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueFocus Communication 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 BlueFocus Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueFocus Communication has no effect on the direction of Microsoft i.e., Microsoft and BlueFocus Communication go up and down completely randomly.
Pair Corralation between Microsoft and BlueFocus Communication
Given the investment horizon of 90 days Microsoft is expected to under-perform the BlueFocus Communication. But the stock apears to be less risky and, when comparing its historical volatility, Microsoft is 4.06 times less risky than BlueFocus Communication. The stock trades about -0.05 of its potential returns per unit of risk. The BlueFocus Communication Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 760.00 in BlueFocus Communication Group on August 27, 2024 and sell it today you would earn a total of 370.00 from holding BlueFocus Communication Group or generate 48.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. BlueFocus Communication Group
Performance |
| Timeline |
| Microsoft |
| BlueFocus Communication |
Microsoft and BlueFocus Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and BlueFocus Communication
The main advantage of trading using opposite Microsoft and BlueFocus Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, BlueFocus Communication 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 BlueFocus Communication will offset losses from the drop in BlueFocus Communication's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |