Correlation Between Microsoft and Cirtek Holdings
Can any of the company-specific risk be diversified away by investing in both Microsoft and Cirtek Holdings 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 Cirtek Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Cirtek Holdings Philippines, you can compare the effects of market volatilities on Microsoft and Cirtek Holdings 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 Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Cirtek Holdings.
Diversification Opportunities for Microsoft and Cirtek Holdings
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Microsoft and Cirtek is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Cirtek Holdings Philippines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cirtek Holdings Phil 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 Cirtek Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cirtek Holdings Phil has no effect on the direction of Microsoft i.e., Microsoft and Cirtek Holdings go up and down completely randomly.
Pair Corralation between Microsoft and Cirtek Holdings
Given the investment horizon of 90 days Microsoft is expected to generate 0.21 times more return on investment than Cirtek Holdings. However, Microsoft is 4.85 times less risky than Cirtek Holdings. It trades about 0.07 of its potential returns per unit of risk. Cirtek Holdings Philippines is currently generating about 0.0 per unit of risk. If you would invest 24,994 in Microsoft on December 1, 2024 and sell it today you would earn a total of 14,705 from holding Microsoft or generate 58.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 40.69% |
| Values | Daily Returns |
Microsoft vs. Cirtek Holdings Philippines
Performance |
| Timeline |
| Microsoft |
| Cirtek Holdings Phil |
Microsoft and Cirtek Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Cirtek Holdings
The main advantage of trading using opposite Microsoft and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Cirtek Holdings 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 Cirtek Holdings will offset losses from the drop in Cirtek Holdings' long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings |
| Cirtek Holdings vs. Apex Mining Co | Cirtek Holdings vs. Philex Mining Corp | Cirtek Holdings vs. Transpacific Broadband Group | Cirtek Holdings vs. Union Bank of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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