Correlation Between Microsoft and Cairo Mezz
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By analyzing existing cross correlation between Microsoft and Cairo Mezz PLC, you can compare the effects of market volatilities on Microsoft and Cairo Mezz 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 Cairo Mezz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Cairo Mezz.
Diversification Opportunities for Microsoft and Cairo Mezz
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Cairo is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Cairo Mezz PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cairo Mezz PLC 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 Cairo Mezz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cairo Mezz PLC has no effect on the direction of Microsoft i.e., Microsoft and Cairo Mezz go up and down completely randomly.
Pair Corralation between Microsoft and Cairo Mezz
Given the investment horizon of 90 days Microsoft is expected to generate 0.54 times more return on investment than Cairo Mezz. However, Microsoft is 1.85 times less risky than Cairo Mezz. It trades about -0.05 of its potential returns per unit of risk. Cairo Mezz PLC is currently generating about -0.13 per unit of risk. If you would invest 42,574 in Microsoft on August 27, 2024 and sell it today you would lose (874.00) from holding Microsoft or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Microsoft vs. Cairo Mezz PLC
Performance |
| Timeline |
| Microsoft |
| Cairo Mezz PLC |
Microsoft and Cairo Mezz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Cairo Mezz
The main advantage of trading using opposite Microsoft and Cairo Mezz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Cairo Mezz 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 Cairo Mezz will offset losses from the drop in Cairo Mezz's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
| Cairo Mezz vs. Eurobank Ergasias Services | Cairo Mezz vs. Public Power | Cairo Mezz vs. Alpha Services and | Cairo Mezz vs. Mytilineos SA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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