Correlation Between Microsoft and Sino Platinum
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By analyzing existing cross correlation between Microsoft and Sino Platinum Metals Co, you can compare the effects of market volatilities on Microsoft and Sino Platinum 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 Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Sino Platinum.
Diversification Opportunities for Microsoft and Sino Platinum
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and Sino is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Sino Platinum Metals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Platinum Metals 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 Sino Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Platinum Metals has no effect on the direction of Microsoft i.e., Microsoft and Sino Platinum go up and down completely randomly.
Pair Corralation between Microsoft and Sino Platinum
Given the investment horizon of 90 days Microsoft is expected to generate 0.95 times more return on investment than Sino Platinum. However, Microsoft is 1.05 times less risky than Sino Platinum. It trades about 0.0 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about -0.07 per unit of risk. If you would invest 42,574 in Microsoft on August 29, 2024 and sell it today you would lose (188.00) from holding Microsoft or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. Sino Platinum Metals Co
Performance |
| Timeline |
| Microsoft |
| Sino Platinum Metals |
Microsoft and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Sino Platinum
The main advantage of trading using opposite Microsoft and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Sino Platinum 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 Sino Platinum will offset losses from the drop in Sino Platinum's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Sino Platinum vs. Baoshan Iron Steel | Sino Platinum vs. Shandong Gold Mining | Sino Platinum vs. Rongsheng Petrochemical Co | Sino Platinum vs. Inner Mongolia BaoTou |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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