Correlation Between Microsoft and Shenzhen Bioeasy
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By analyzing existing cross correlation between Microsoft and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Microsoft and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Shenzhen Bioeasy.
Diversification Opportunities for Microsoft and Shenzhen Bioeasy
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Shenzhen is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Microsoft i.e., Microsoft and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Microsoft and Shenzhen Bioeasy
Given the investment horizon of 90 days Microsoft is expected to generate 0.31 times more return on investment than Shenzhen Bioeasy. However, Microsoft is 3.21 times less risky than Shenzhen Bioeasy. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about -0.01 per unit of risk. If you would invest 31,876 in Microsoft on August 25, 2024 and sell it today you would earn a total of 9,824 from holding Microsoft or generate 30.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.83% |
| Values | Daily Returns |
Microsoft vs. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Microsoft |
| Shenzhen Bioeasy Bio |
Microsoft and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Shenzhen Bioeasy
The main advantage of trading using opposite Microsoft and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Shenzhen Bioeasy vs. China State Construction | Shenzhen Bioeasy vs. Poly Real Estate | Shenzhen Bioeasy vs. China Vanke Co | Shenzhen Bioeasy vs. China Merchants Shekou |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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