Correlation Between Microsoft and SUMITR
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By analyzing existing cross correlation between Microsoft and SUMITR 255 10 MAR 25, you can compare the effects of market volatilities on Microsoft and SUMITR 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 SUMITR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and SUMITR.
Diversification Opportunities for Microsoft and SUMITR
Good diversification
The 3 months correlation between Microsoft and SUMITR is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and SUMITR 255 10 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMITR 255 10 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 SUMITR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMITR 255 10 has no effect on the direction of Microsoft i.e., Microsoft and SUMITR go up and down completely randomly.
Pair Corralation between Microsoft and SUMITR
Given the investment horizon of 90 days Microsoft is expected to generate 1.0 times more return on investment than SUMITR. However, Microsoft is 1.0 times more volatile than SUMITR 255 10 MAR 25. It trades about -0.04 of its potential returns per unit of risk. SUMITR 255 10 MAR 25 is currently generating about -0.16 per unit of risk. If you would invest 43,167 in Microsoft on August 31, 2024 and sell it today you would lose (868.00) from holding Microsoft or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.27% |
| Values | Daily Returns |
Microsoft vs. SUMITR 255 10 MAR 25
Performance |
| Timeline |
| Microsoft |
| SUMITR 255 10 |
Microsoft and SUMITR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and SUMITR
The main advantage of trading using opposite Microsoft and SUMITR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, SUMITR 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 SUMITR will offset losses from the drop in SUMITR's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| SUMITR vs. HE Equipment Services | SUMITR vs. Nyxoah | SUMITR vs. Bausch Lomb Corp | SUMITR vs. Hertz Global Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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