Correlation Between Microsoft and Integrated Medical
Can any of the company-specific risk be diversified away by investing in both Microsoft and Integrated Medical 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 Integrated Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Integrated Medical Resources, you can compare the effects of market volatilities on Microsoft and Integrated Medical 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 Integrated Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Integrated Medical.
Diversification Opportunities for Microsoft and Integrated Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microsoft and Integrated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Integrated Medical Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Medical 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 Integrated Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Medical has no effect on the direction of Microsoft i.e., Microsoft and Integrated Medical go up and down completely randomly.
Pair Corralation between Microsoft and Integrated Medical
If you would invest 22,516 in Microsoft on October 1, 2024 and sell it today you would earn a total of 20,537 from holding Microsoft or generate 91.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Microsoft vs. Integrated Medical Resources
Performance |
| Timeline |
| Microsoft |
| Integrated Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and Integrated Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Integrated Medical
The main advantage of trading using opposite Microsoft and Integrated Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Integrated Medical 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 Integrated Medical will offset losses from the drop in Integrated Medical's long position.| Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta | Microsoft vs. Nextnav Acquisition Corp |
| Integrated Medical vs. Herc Holdings | Integrated Medical vs. Parker Hannifin | Integrated Medical vs. Broadstone Net Lease | Integrated Medical vs. Tritent International Agriculture |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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