Correlation Between Microsoft and OCCIDENTAL
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By analyzing existing cross correlation between Microsoft and OCCIDENTAL PETE P, you can compare the effects of market volatilities on Microsoft and OCCIDENTAL 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 OCCIDENTAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and OCCIDENTAL.
Diversification Opportunities for Microsoft and OCCIDENTAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microsoft and OCCIDENTAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and OCCIDENTAL PETE P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCCIDENTAL PETE P 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 OCCIDENTAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCCIDENTAL PETE P has no effect on the direction of Microsoft i.e., Microsoft and OCCIDENTAL go up and down completely randomly.
Pair Corralation between Microsoft and OCCIDENTAL
If you would invest 39,058 in Microsoft on January 26, 2025 and sell it today you would earn a total of 127.00 from holding Microsoft or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Microsoft vs. OCCIDENTAL PETE P
Performance |
| Timeline |
| Microsoft |
| OCCIDENTAL PETE P |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Microsoft and OCCIDENTAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and OCCIDENTAL
The main advantage of trading using opposite Microsoft and OCCIDENTAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, OCCIDENTAL 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 OCCIDENTAL will offset losses from the drop in OCCIDENTAL's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings |
| OCCIDENTAL vs. Logan Ridge Finance | OCCIDENTAL vs. BlackRock | OCCIDENTAL vs. Zedge Inc | OCCIDENTAL vs. Cadence Design Systems |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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