Correlation Between Microsoft and ETFS Swiss
Can any of the company-specific risk be diversified away by investing in both Microsoft and ETFS Swiss 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 ETFS Swiss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and ETFS Swiss Franc, you can compare the effects of market volatilities on Microsoft and ETFS Swiss 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 ETFS Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and ETFS Swiss.
Diversification Opportunities for Microsoft and ETFS Swiss
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microsoft and ETFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and ETFS Swiss Franc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFS Swiss Franc 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 ETFS Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFS Swiss Franc has no effect on the direction of Microsoft i.e., Microsoft and ETFS Swiss go up and down completely randomly.
Pair Corralation between Microsoft and ETFS Swiss
If you would invest 41,794 in Microsoft on September 19, 2024 and sell it today you would earn a total of 3,652 from holding Microsoft or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Microsoft vs. ETFS Swiss Franc
Performance |
| Timeline |
| Microsoft |
| ETFS Swiss Franc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and ETFS Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and ETFS Swiss
The main advantage of trading using opposite Microsoft and ETFS Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, ETFS Swiss 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 ETFS Swiss will offset losses from the drop in ETFS Swiss' long position.| Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta | Microsoft vs. Nextnav Acquisition Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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