Correlation Between Microsoft and MAS Financial
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By analyzing existing cross correlation between Microsoft and MAS Financial Services, you can compare the effects of market volatilities on Microsoft and MAS Financial 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 MAS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and MAS Financial.
Diversification Opportunities for Microsoft and MAS Financial
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microsoft and MAS is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and MAS Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAS Financial Services 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 MAS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAS Financial Services has no effect on the direction of Microsoft i.e., Microsoft and MAS Financial go up and down completely randomly.
Pair Corralation between Microsoft and MAS Financial
Given the investment horizon of 90 days Microsoft is expected to generate 5.0 times less return on investment than MAS Financial. But when comparing it to its historical volatility, Microsoft is 8.82 times less risky than MAS Financial. It trades about 0.06 of its potential returns per unit of risk. MAS Financial Services is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 25,793 in MAS Financial Services on August 31, 2024 and sell it today you would earn a total of 1,982 from holding MAS Financial Services or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.86% |
| Values | Daily Returns |
Microsoft vs. MAS Financial Services
Performance |
| Timeline |
| Microsoft |
| MAS Financial Services |
Microsoft and MAS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and MAS Financial
The main advantage of trading using opposite Microsoft and MAS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, MAS Financial 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 MAS Financial will offset losses from the drop in MAS Financial's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| MAS Financial vs. Tata Investment | MAS Financial vs. UTI Asset Management | MAS Financial vs. Kalyani Investment | MAS Financial vs. Dhunseri Investments Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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