Correlation Between Microsoft and Huaxia Fund
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By analyzing existing cross correlation between Microsoft and Huaxia Fund Management, you can compare the effects of market volatilities on Microsoft and Huaxia Fund 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 Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Huaxia Fund.
Diversification Opportunities for Microsoft and Huaxia Fund
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microsoft and Huaxia is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Huaxia Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Fund Management 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 Huaxia Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Fund Management has no effect on the direction of Microsoft i.e., Microsoft and Huaxia Fund go up and down completely randomly.
Pair Corralation between Microsoft and Huaxia Fund
Given the investment horizon of 90 days Microsoft is expected to under-perform the Huaxia Fund. In addition to that, Microsoft is 2.18 times more volatile than Huaxia Fund Management. It trades about -0.01 of its total potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.17 per unit of volatility. If you would invest 299.00 in Huaxia Fund Management on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Huaxia Fund Management or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Microsoft vs. Huaxia Fund Management
Performance |
| Timeline |
| Microsoft |
| Huaxia Fund Management |
Microsoft and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Huaxia Fund
The main advantage of trading using opposite Microsoft and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Huaxia Fund 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 Huaxia Fund will offset losses from the drop in Huaxia Fund's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings |
| Huaxia Fund vs. Fuzhou Rockchip Electronics | Huaxia Fund vs. Tonghua Grape Wine | Huaxia Fund vs. Nantong Haixing Electronics | Huaxia Fund vs. Cabio Biotech Wuhan |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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