Correlation Between Microsoft and CoreShares
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By analyzing existing cross correlation between Microsoft and CoreShares SP Global, you can compare the effects of market volatilities on Microsoft and CoreShares 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 CoreShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and CoreShares.
Diversification Opportunities for Microsoft and CoreShares
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and CoreShares is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and CoreShares SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreShares SP Global 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 CoreShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreShares SP Global has no effect on the direction of Microsoft i.e., Microsoft and CoreShares go up and down completely randomly.
Pair Corralation between Microsoft and CoreShares
Given the investment horizon of 90 days Microsoft is expected to generate 1.38 times less return on investment than CoreShares. In addition to that, Microsoft is 1.72 times more volatile than CoreShares SP Global. It trades about 0.02 of its total potential returns per unit of risk. CoreShares SP Global is currently generating about 0.05 per unit of volatility. If you would invest 204,400 in CoreShares SP Global on August 28, 2024 and sell it today you would earn a total of 2,200 from holding CoreShares SP Global or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. CoreShares SP Global
Performance |
| Timeline |
| Microsoft |
| CoreShares SP Global |
Microsoft and CoreShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and CoreShares
The main advantage of trading using opposite Microsoft and CoreShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, CoreShares 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 CoreShares will offset losses from the drop in CoreShares' long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
| CoreShares vs. CoreShares SP 500 | CoreShares vs. CoreShares Income AMETF | CoreShares vs. CoreShares Preference Share | CoreShares vs. CoreShares Yield Selected |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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