Correlation Between Microsoft and VERIZON
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and VERIZON MUNICATIONS INC, you can compare the effects of market volatilities on Microsoft and VERIZON 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 VERIZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and VERIZON.
Diversification Opportunities for Microsoft and VERIZON
Average diversification
The 3 months correlation between Microsoft and VERIZON is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and VERIZON MUNICATIONS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERIZON MUNICATIONS INC 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 VERIZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERIZON MUNICATIONS INC has no effect on the direction of Microsoft i.e., Microsoft and VERIZON go up and down completely randomly.
Pair Corralation between Microsoft and VERIZON
Given the investment horizon of 90 days Microsoft is expected to generate 0.93 times more return on investment than VERIZON. However, Microsoft is 1.07 times less risky than VERIZON. It trades about -0.04 of its potential returns per unit of risk. VERIZON MUNICATIONS INC is currently generating about -0.18 per unit of risk. If you would invest 42,574 in Microsoft on August 28, 2024 and sell it today you would lose (695.00) from holding Microsoft or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Microsoft vs. VERIZON MUNICATIONS INC
Performance |
| Timeline |
| Microsoft |
| VERIZON MUNICATIONS INC |
Microsoft and VERIZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and VERIZON
The main advantage of trading using opposite Microsoft and VERIZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, VERIZON 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 VERIZON will offset losses from the drop in VERIZON's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
| VERIZON vs. The Coca Cola | VERIZON vs. JPMorgan Chase Co | VERIZON vs. Dupont De Nemours | VERIZON vs. Alcoa Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |