Correlation Between Microsoft and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both Microsoft and Ingram Micro 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 Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Ingram Micro, you can compare the effects of market volatilities on Microsoft and Ingram Micro 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 Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Ingram Micro.
Diversification Opportunities for Microsoft and Ingram Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microsoft and Ingram is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Ingram Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro has no effect on the direction of Microsoft i.e., Microsoft and Ingram Micro go up and down completely randomly.
Pair Corralation between Microsoft and Ingram Micro
If you would invest 44,807 in Microsoft on September 19, 2024 and sell it today you would earn a total of 639.00 from holding Microsoft or generate 1.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Microsoft vs. Ingram Micro
Performance |
Timeline |
Microsoft |
Ingram Micro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and Ingram Micro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and Ingram Micro
The main advantage of trading using opposite Microsoft and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta | Microsoft vs. Nextnav Acquisition Corp |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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