Correlation Between Microsoft and Jiangsu Hoperun
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By analyzing existing cross correlation between Microsoft and Jiangsu Hoperun Software, you can compare the effects of market volatilities on Microsoft and Jiangsu Hoperun 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 Jiangsu Hoperun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Jiangsu Hoperun.
Diversification Opportunities for Microsoft and Jiangsu Hoperun
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and Jiangsu is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Jiangsu Hoperun Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Hoperun 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 Jiangsu Hoperun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Hoperun Software has no effect on the direction of Microsoft i.e., Microsoft and Jiangsu Hoperun go up and down completely randomly.
Pair Corralation between Microsoft and Jiangsu Hoperun
Given the investment horizon of 90 days Microsoft is expected to generate 0.33 times more return on investment than Jiangsu Hoperun. However, Microsoft is 3.02 times less risky than Jiangsu Hoperun. It trades about 0.19 of its potential returns per unit of risk. Jiangsu Hoperun Software is currently generating about -0.05 per unit of risk. If you would invest 42,483 in Microsoft on October 29, 2024 and sell it today you would earn a total of 1,923 from holding Microsoft or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Microsoft vs. Jiangsu Hoperun Software
Performance |
| Timeline |
| Microsoft |
| Jiangsu Hoperun Software |
Microsoft and Jiangsu Hoperun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Jiangsu Hoperun
The main advantage of trading using opposite Microsoft and Jiangsu Hoperun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Jiangsu Hoperun 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 Jiangsu Hoperun will offset losses from the drop in Jiangsu Hoperun's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. BLOCK INC | Microsoft vs. Adobe Systems Incorporated |
| Jiangsu Hoperun vs. Shandong Polymer Biochemicals | Jiangsu Hoperun vs. Vats Liquor Chain | Jiangsu Hoperun vs. Ningxia Younglight Chemicals | Jiangsu Hoperun vs. Shenzhen Noposion Agrochemicals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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