Correlation Between Microsoft and JOHN HOLT
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By analyzing existing cross correlation between Microsoft and JOHN HOLT PLC, you can compare the effects of market volatilities on Microsoft and JOHN HOLT 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 JOHN HOLT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and JOHN HOLT.
Diversification Opportunities for Microsoft and JOHN HOLT
Pay attention - limited upside
The 3 months correlation between Microsoft and JOHN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and JOHN HOLT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JOHN HOLT 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 JOHN HOLT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JOHN HOLT PLC has no effect on the direction of Microsoft i.e., Microsoft and JOHN HOLT go up and down completely randomly.
Pair Corralation between Microsoft and JOHN HOLT
Given the investment horizon of 90 days Microsoft is expected to under-perform the JOHN HOLT. But the stock apears to be less risky and, when comparing its historical volatility, Microsoft is 3.77 times less risky than JOHN HOLT. The stock trades about -0.04 of its potential returns per unit of risk. The JOHN HOLT PLC is currently generating about 0.85 of returns per unit of risk over similar time horizon. If you would invest 275.00 in JOHN HOLT PLC on August 30, 2024 and sell it today you would earn a total of 617.00 from holding JOHN HOLT PLC or generate 224.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. JOHN HOLT PLC
Performance |
| Timeline |
| Microsoft |
| JOHN HOLT PLC |
Microsoft and JOHN HOLT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and JOHN HOLT
The main advantage of trading using opposite Microsoft and JOHN HOLT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, JOHN HOLT 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 JOHN HOLT will offset losses from the drop in JOHN HOLT's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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