Correlation Between Microsoft and Shanghai Jin
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By analyzing existing cross correlation between Microsoft and Shanghai Jin Jiang, you can compare the effects of market volatilities on Microsoft and Shanghai Jin 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 Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Shanghai Jin.
Diversification Opportunities for Microsoft and Shanghai Jin
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 Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Microsoft i.e., Microsoft and Shanghai Jin go up and down completely randomly.
Pair Corralation between Microsoft and Shanghai Jin
Given the investment horizon of 90 days Microsoft is expected to under-perform the Shanghai Jin. In addition to that, Microsoft is 2.87 times more volatile than Shanghai Jin Jiang. It trades about -0.08 of its total potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.0 per unit of volatility. If you would invest 149.00 in Shanghai Jin Jiang on November 7, 2024 and sell it today you would earn a total of 0.00 from holding Shanghai Jin Jiang or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Microsoft vs. Shanghai Jin Jiang
Performance |
| Timeline |
| Microsoft |
| Shanghai Jin Jiang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Shanghai Jin
The main advantage of trading using opposite Microsoft and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Shanghai Jin 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 Jin will offset losses from the drop in Shanghai Jin'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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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