Correlation Between Microsoft and Wenzhou Hongfeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on Microsoft and Wenzhou Hongfeng 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 Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Wenzhou Hongfeng.
Diversification Opportunities for Microsoft and Wenzhou Hongfeng
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Microsoft and Wenzhou is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of Microsoft i.e., Microsoft and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between Microsoft and Wenzhou Hongfeng
Given the investment horizon of 90 days Microsoft is expected to generate 0.36 times more return on investment than Wenzhou Hongfeng. However, Microsoft is 2.78 times less risky than Wenzhou Hongfeng. It trades about 0.27 of its potential returns per unit of risk. Wenzhou Hongfeng Electrical is currently generating about -0.01 per unit of risk. If you would invest 41,718 in Microsoft on September 12, 2024 and sell it today you would earn a total of 2,615 from holding Microsoft or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Microsoft vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| Microsoft |
| Wenzhou Hongfeng Ele |
Microsoft and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Wenzhou Hongfeng
The main advantage of trading using opposite Microsoft and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Wenzhou Hongfeng vs. YLZ Information Tech | Wenzhou Hongfeng vs. Xiamen Goldenhome Co | Wenzhou Hongfeng vs. ButOne Information Corp | Wenzhou Hongfeng vs. Nanxing Furniture Machinery |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |