Correlation Between Microsoft and CINTAS
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By analyzing existing cross correlation between Microsoft and CINTAS P NO, you can compare the effects of market volatilities on Microsoft and CINTAS 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 CINTAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and CINTAS.
Diversification Opportunities for Microsoft and CINTAS
Weak diversification
The 3 months correlation between Microsoft and CINTAS is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and CINTAS P NO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CINTAS P NO 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 CINTAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CINTAS P NO has no effect on the direction of Microsoft i.e., Microsoft and CINTAS go up and down completely randomly.
Pair Corralation between Microsoft and CINTAS
Given the investment horizon of 90 days Microsoft is expected to generate 3.66 times more return on investment than CINTAS. However, Microsoft is 3.66 times more volatile than CINTAS P NO. It trades about 0.06 of its potential returns per unit of risk. CINTAS P NO is currently generating about 0.01 per unit of risk. If you would invest 32,302 in Microsoft on September 1, 2024 and sell it today you would earn a total of 10,044 from holding Microsoft or generate 31.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Microsoft vs. CINTAS P NO
Performance |
| Timeline |
| Microsoft |
| CINTAS P NO |
Microsoft and CINTAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and CINTAS
The main advantage of trading using opposite Microsoft and CINTAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, CINTAS 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 CINTAS will offset losses from the drop in CINTAS's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| CINTAS vs. Northstar Clean Technologies | CINTAS vs. Perseus Mining Limited | CINTAS vs. Chester Mining | CINTAS vs. Datadog |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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