Correlation Between Microsoft and GROUP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and GROUP 1 AUTOMOTIVE, you can compare the effects of market volatilities on Microsoft and GROUP 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 GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and GROUP.
Diversification Opportunities for Microsoft and GROUP
Modest diversification
The 3 months correlation between Microsoft and GROUP is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and GROUP 1 AUTOMOTIVE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GROUP 1 AUTOMOTIVE 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 GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GROUP 1 AUTOMOTIVE has no effect on the direction of Microsoft i.e., Microsoft and GROUP go up and down completely randomly.
Pair Corralation between Microsoft and GROUP
Given the investment horizon of 90 days Microsoft is expected to generate 2.51 times more return on investment than GROUP. However, Microsoft is 2.51 times more volatile than GROUP 1 AUTOMOTIVE. It trades about 0.02 of its potential returns per unit of risk. GROUP 1 AUTOMOTIVE is currently generating about -0.21 per unit of risk. If you would invest 42,574 in Microsoft on August 28, 2024 and sell it today you would earn a total of 225.00 from holding Microsoft or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Microsoft vs. GROUP 1 AUTOMOTIVE
Performance |
| Timeline |
| Microsoft |
| GROUP 1 AUTOMOTIVE |
Microsoft and GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and GROUP
The main advantage of trading using opposite Microsoft and GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, GROUP 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 GROUP will offset losses from the drop in GROUP's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |