Correlation Between Microsoft and ETFS 1x
Can any of the company-specific risk be diversified away by investing in both Microsoft and ETFS 1x 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 ETFS 1x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and ETFS 1x Daily, you can compare the effects of market volatilities on Microsoft and ETFS 1x 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 ETFS 1x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and ETFS 1x.
Diversification Opportunities for Microsoft and ETFS 1x
Pay attention - limited upside
The 3 months correlation between Microsoft and ETFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and ETFS 1x Daily in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFS 1x Daily 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 ETFS 1x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFS 1x Daily has no effect on the direction of Microsoft i.e., Microsoft and ETFS 1x go up and down completely randomly.
Pair Corralation between Microsoft and ETFS 1x
If you would invest 40,554 in Microsoft on September 1, 2024 and sell it today you would earn a total of 1,792 from holding Microsoft or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Microsoft vs. ETFS 1x Daily
Performance |
| Timeline |
| Microsoft |
| ETFS 1x Daily |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and ETFS 1x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and ETFS 1x
The main advantage of trading using opposite Microsoft and ETFS 1x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, ETFS 1x 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 ETFS 1x will offset losses from the drop in ETFS 1x's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| ETFS 1x vs. MTI Wireless Edge | ETFS 1x vs. Iron Mountain | ETFS 1x vs. Compagnie Plastic Omnium | ETFS 1x vs. Trainline Plc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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