Correlation Between Microsoft and Citic Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and Citic Guoan Wine, you can compare the effects of market volatilities on Microsoft and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Citic Guoan.
Diversification Opportunities for Microsoft and Citic Guoan
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Citic is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Microsoft i.e., Microsoft and Citic Guoan go up and down completely randomly.
Pair Corralation between Microsoft and Citic Guoan
Given the investment horizon of 90 days Microsoft is expected to generate 0.47 times more return on investment than Citic Guoan. However, Microsoft is 2.11 times less risky than Citic Guoan. It trades about 0.06 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.01 per unit of risk. If you would invest 32,151 in Microsoft on August 31, 2024 and sell it today you would earn a total of 10,195 from holding Microsoft or generate 31.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.99% |
| Values | Daily Returns |
Microsoft vs. Citic Guoan Wine
Performance |
| Timeline |
| Microsoft |
| Citic Guoan Wine |
Microsoft and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Citic Guoan
The main advantage of trading using opposite Microsoft and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Citic Guoan vs. Shuhua Sports Co | Citic Guoan vs. Everdisplay Optronics Shanghai | Citic Guoan vs. Xiandai Investment Co | Citic Guoan vs. Jiangsu Financial Leasing |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |