Correlation Between Microsoft and Aspire Mining
Can any of the company-specific risk be diversified away by investing in both Microsoft and Aspire Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Microsoft and Aspire Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Aspire Mining, you can compare the effects of market volatilities on Microsoft and Aspire Mining 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 Aspire Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Aspire Mining.
Diversification Opportunities for Microsoft and Aspire Mining
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Aspire is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Aspire Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspire Mining 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 Aspire Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspire Mining has no effect on the direction of Microsoft i.e., Microsoft and Aspire Mining go up and down completely randomly.
Pair Corralation between Microsoft and Aspire Mining
Given the investment horizon of 90 days Microsoft is expected to generate 18.65 times less return on investment than Aspire Mining. But when comparing it to its historical volatility, Microsoft is 4.7 times less risky than Aspire Mining. It trades about 0.01 of its potential returns per unit of risk. Aspire Mining is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Aspire Mining on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Aspire Mining or generate 26.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Microsoft vs. Aspire Mining
Performance |
| Timeline |
| Microsoft |
| Aspire Mining |
Microsoft and Aspire Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Aspire Mining
The main advantage of trading using opposite Microsoft and Aspire Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Aspire Mining 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 Aspire Mining will offset losses from the drop in Aspire Mining's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
| Aspire Mining vs. Navigator Global Investments | Aspire Mining vs. Step One Clothing | Aspire Mining vs. Mirrabooka Investments | Aspire Mining vs. Platinum Asset Management |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |