Correlation Between Microsoft and STANLN
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By analyzing existing cross correlation between Microsoft and STANLN 32 17 APR 25, you can compare the effects of market volatilities on Microsoft and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and STANLN.
Diversification Opportunities for Microsoft and STANLN
Significant diversification
The 3 months correlation between Microsoft and STANLN is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and STANLN 32 17 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 32 17 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 32 17 has no effect on the direction of Microsoft i.e., Microsoft and STANLN go up and down completely randomly.
Pair Corralation between Microsoft and STANLN
Given the investment horizon of 90 days Microsoft is expected to generate 20.69 times more return on investment than STANLN. However, Microsoft is 20.69 times more volatile than STANLN 32 17 APR 25. It trades about 0.26 of its potential returns per unit of risk. STANLN 32 17 APR 25 is currently generating about 0.72 per unit of risk. If you would invest 42,435 in Microsoft on September 14, 2024 and sell it today you would earn a total of 2,521 from holding Microsoft or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.05% |
| Values | Daily Returns |
Microsoft vs. STANLN 32 17 APR 25
Performance |
| Timeline |
| Microsoft |
| STANLN 32 17 |
Microsoft and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and STANLN
The main advantage of trading using opposite Microsoft and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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