Correlation Between Microsoft and Apexigen
Can any of the company-specific risk be diversified away by investing in both Microsoft and Apexigen 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 Apexigen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Apexigen, you can compare the effects of market volatilities on Microsoft and Apexigen 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 Apexigen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Apexigen.
Diversification Opportunities for Microsoft and Apexigen
Good diversification
The 3 months correlation between Microsoft and Apexigen is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Apexigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apexigen 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 Apexigen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apexigen has no effect on the direction of Microsoft i.e., Microsoft and Apexigen go up and down completely randomly.
Pair Corralation between Microsoft and Apexigen
If you would invest 40,554 in Microsoft on September 1, 2024 and sell it today you would earn a total of 1,792 from holding Microsoft or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Microsoft vs. Apexigen
Performance |
| Timeline |
| Microsoft |
| Apexigen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and Apexigen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Apexigen
The main advantage of trading using opposite Microsoft and Apexigen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Apexigen 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 Apexigen will offset losses from the drop in Apexigen's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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