Correlation Between Microsoft and 21Shares Staking
Can any of the company-specific risk be diversified away by investing in both Microsoft and 21Shares Staking 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 21Shares Staking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and 21Shares Staking Basket, you can compare the effects of market volatilities on Microsoft and 21Shares Staking 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 21Shares Staking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and 21Shares Staking.
Diversification Opportunities for Microsoft and 21Shares Staking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microsoft and 21Shares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and 21Shares Staking Basket in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Staking Basket 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 21Shares Staking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Staking Basket has no effect on the direction of Microsoft i.e., Microsoft and 21Shares Staking go up and down completely randomly.
Pair Corralation between Microsoft and 21Shares Staking
If you would invest 32,373 in Microsoft on August 26, 2024 and sell it today you would earn a total of 9,327 from holding Microsoft or generate 28.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Microsoft vs. 21Shares Staking Basket
Performance |
| Timeline |
| Microsoft |
| 21Shares Staking Basket |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and 21Shares Staking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and 21Shares Staking
The main advantage of trading using opposite Microsoft and 21Shares Staking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, 21Shares Staking 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 21Shares Staking will offset losses from the drop in 21Shares Staking's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| 21Shares Staking vs. 21Shares Crypto Basket | 21Shares Staking vs. 21Shares Decentraland ETP | 21Shares Staking vs. 21Shares Uniswap ETP | 21Shares Staking vs. 21Shares Cosmos Staking |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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