Correlation Between Microsoft and Beijing Roborock
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By analyzing existing cross correlation between Microsoft and Beijing Roborock Technology, you can compare the effects of market volatilities on Microsoft and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Beijing Roborock.
Diversification Opportunities for Microsoft and Beijing Roborock
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microsoft and Beijing is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Microsoft i.e., Microsoft and Beijing Roborock go up and down completely randomly.
Pair Corralation between Microsoft and Beijing Roborock
Given the investment horizon of 90 days Microsoft is expected to generate 0.25 times more return on investment than Beijing Roborock. However, Microsoft is 3.94 times less risky than Beijing Roborock. It trades about 0.03 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about -0.02 per unit of risk. If you would invest 40,978 in Microsoft on August 28, 2024 and sell it today you would earn a total of 901.00 from holding Microsoft or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Microsoft vs. Beijing Roborock Technology
Performance |
| Timeline |
| Microsoft |
| Beijing Roborock Tec |
Microsoft and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Beijing Roborock
The main advantage of trading using opposite Microsoft and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
| Beijing Roborock vs. Puyang Huicheng Electronic | Beijing Roborock vs. Masterwork Machinery | Beijing Roborock vs. Success Electronics | Beijing Roborock vs. Shenzhen Clou Electronics |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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