Correlation Between Microsoft and By Health
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By analyzing existing cross correlation between Microsoft and By health, you can compare the effects of market volatilities on Microsoft and By Health 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and By Health.
Diversification Opportunities for Microsoft and By Health
Very good diversification
The 3 months correlation between Microsoft and 300146 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Microsoft i.e., Microsoft and By Health go up and down completely randomly.
Pair Corralation between Microsoft and By Health
Given the investment horizon of 90 days Microsoft is expected to generate 0.55 times more return on investment than By Health. However, Microsoft is 1.82 times less risky than By Health. It trades about 0.19 of its potential returns per unit of risk. By health is currently generating about -0.03 per unit of risk. If you would invest 40,554 in Microsoft on September 1, 2024 and sell it today you would earn a total of 1,792 from holding Microsoft or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Microsoft vs. By health
Performance |
| Timeline |
| Microsoft |
| By health |
Microsoft and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and By Health
The main advantage of trading using opposite Microsoft and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| By Health vs. Niutech Environment Technology | By Health vs. Anhui Transport Consulting | By Health vs. Jiujiang Shanshui Technology | By Health vs. Western Superconducting Tech |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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