Correlation Between Microsoft and Zhuzhou Kibing
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By analyzing existing cross correlation between Microsoft and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Microsoft and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Zhuzhou Kibing.
Diversification Opportunities for Microsoft and Zhuzhou Kibing
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Zhuzhou is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Microsoft i.e., Microsoft and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Microsoft and Zhuzhou Kibing
Given the investment horizon of 90 days Microsoft is expected to under-perform the Zhuzhou Kibing. In addition to that, Microsoft is 1.07 times more volatile than Zhuzhou Kibing Group. It trades about -0.08 of its total potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about 0.09 per unit of volatility. If you would invest 556.00 in Zhuzhou Kibing Group on November 7, 2024 and sell it today you would earn a total of 15.00 from holding Zhuzhou Kibing Group or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.0% |
| Values | Daily Returns |
Microsoft vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Microsoft |
| Zhuzhou Kibing Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Zhuzhou Kibing
The main advantage of trading using opposite Microsoft and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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