Correlation Between Microsoft and Beijing Wandong
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By analyzing existing cross correlation between Microsoft and Beijing Wandong Medical, you can compare the effects of market volatilities on Microsoft and Beijing Wandong 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 Beijing Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Beijing Wandong.
Diversification Opportunities for Microsoft and Beijing Wandong
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Beijing is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong Medical 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 Beijing Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of Microsoft i.e., Microsoft and Beijing Wandong go up and down completely randomly.
Pair Corralation between Microsoft and Beijing Wandong
Given the investment horizon of 90 days Microsoft is expected to generate 0.53 times more return on investment than Beijing Wandong. However, Microsoft is 1.89 times less risky than Beijing Wandong. It trades about 0.07 of its potential returns per unit of risk. Beijing Wandong Medical is currently generating about 0.0 per unit of risk. If you would invest 33,040 in Microsoft on August 29, 2024 and sell it today you would earn a total of 9,259 from holding Microsoft or generate 28.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.19% |
| Values | Daily Returns |
Microsoft vs. Beijing Wandong Medical
Performance |
| Timeline |
| Microsoft |
| Beijing Wandong Medical |
Microsoft and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Beijing Wandong
The main advantage of trading using opposite Microsoft and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Beijing Wandong 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 Beijing Wandong will offset losses from the drop in Beijing Wandong's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Beijing Wandong vs. Sunwave Communications Co | Beijing Wandong vs. Hubei Xingfa Chemicals | Beijing Wandong vs. Shandong Polymer Biochemicals | Beijing Wandong vs. 360 Security Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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