Correlation Between Microsoft and SPDR Blackstone
Can any of the company-specific risk be diversified away by investing in both Microsoft and SPDR Blackstone 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 SPDR Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and SPDR Blackstone Senior, you can compare the effects of market volatilities on Microsoft and SPDR Blackstone 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 SPDR Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and SPDR Blackstone.
Diversification Opportunities for Microsoft and SPDR Blackstone
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Microsoft and SPDR is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and SPDR Blackstone Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Blackstone Senior 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 SPDR Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Blackstone Senior has no effect on the direction of Microsoft i.e., Microsoft and SPDR Blackstone go up and down completely randomly.
Pair Corralation between Microsoft and SPDR Blackstone
Given the investment horizon of 90 days Microsoft is expected to under-perform the SPDR Blackstone. In addition to that, Microsoft is 13.16 times more volatile than SPDR Blackstone Senior. It trades about -0.04 of its total potential returns per unit of risk. SPDR Blackstone Senior is currently generating about 0.3 per unit of volatility. If you would invest 4,163 in SPDR Blackstone Senior on August 30, 2024 and sell it today you would earn a total of 37.00 from holding SPDR Blackstone Senior or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. SPDR Blackstone Senior
Performance |
| Timeline |
| Microsoft |
| SPDR Blackstone Senior |
Microsoft and SPDR Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and SPDR Blackstone
The main advantage of trading using opposite Microsoft and SPDR Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, SPDR Blackstone 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 SPDR Blackstone will offset losses from the drop in SPDR Blackstone's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| SPDR Blackstone vs. Invesco Senior Loan | SPDR Blackstone vs. First Trust Senior | SPDR Blackstone vs. SPDR Bloomberg Short | SPDR Blackstone vs. SPDR Bloomberg Investment |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |