Correlation Between Microsoft and Harbin Hatou
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By analyzing existing cross correlation between Microsoft and Harbin Hatou Investment, you can compare the effects of market volatilities on Microsoft and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Harbin Hatou.
Diversification Opportunities for Microsoft and Harbin Hatou
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Harbin is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Microsoft i.e., Microsoft and Harbin Hatou go up and down completely randomly.
Pair Corralation between Microsoft and Harbin Hatou
Given the investment horizon of 90 days Microsoft is expected to generate 0.46 times more return on investment than Harbin Hatou. However, Microsoft is 2.18 times less risky than Harbin Hatou. It trades about 0.02 of its potential returns per unit of risk. Harbin Hatou Investment is currently generating about -0.01 per unit of risk. If you would invest 42,574 in Microsoft on August 28, 2024 and sell it today you would earn a total of 225.00 from holding Microsoft or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. Harbin Hatou Investment
Performance |
| Timeline |
| Microsoft |
| Harbin Hatou Investment |
Microsoft and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Harbin Hatou
The main advantage of trading using opposite Microsoft and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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