Correlation Between Microsoft and Shanghai AtHub
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By analyzing existing cross correlation between Microsoft and Shanghai AtHub Co, you can compare the effects of market volatilities on Microsoft and Shanghai AtHub 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 Shanghai AtHub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Shanghai AtHub.
Diversification Opportunities for Microsoft and Shanghai AtHub
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microsoft and Shanghai is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Shanghai AtHub Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai AtHub 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 Shanghai AtHub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai AtHub has no effect on the direction of Microsoft i.e., Microsoft and Shanghai AtHub go up and down completely randomly.
Pair Corralation between Microsoft and Shanghai AtHub
Given the investment horizon of 90 days Microsoft is expected to under-perform the Shanghai AtHub. But the stock apears to be less risky and, when comparing its historical volatility, Microsoft is 4.5 times less risky than Shanghai AtHub. The stock trades about -0.36 of its potential returns per unit of risk. The Shanghai AtHub Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,702 in Shanghai AtHub Co on October 17, 2024 and sell it today you would earn a total of 156.00 from holding Shanghai AtHub Co or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Microsoft vs. Shanghai AtHub Co
Performance |
| Timeline |
| Microsoft |
| Shanghai AtHub |
Microsoft and Shanghai AtHub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Shanghai AtHub
The main advantage of trading using opposite Microsoft and Shanghai AtHub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Shanghai AtHub 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 Shanghai AtHub will offset losses from the drop in Shanghai AtHub's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Shanghai AtHub vs. China State Construction | Shanghai AtHub vs. Poly Real Estate | Shanghai AtHub vs. China Vanke Co | Shanghai AtHub vs. China Merchants Shekou |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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