Correlation Between Microsoft and Anacortes Mining
Can any of the company-specific risk be diversified away by investing in both Microsoft and Anacortes Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Microsoft and Anacortes Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Anacortes Mining Corp, you can compare the effects of market volatilities on Microsoft and Anacortes Mining 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 Anacortes Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Anacortes Mining.
Diversification Opportunities for Microsoft and Anacortes Mining
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Anacortes is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Anacortes Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anacortes Mining Corp 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 Anacortes Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anacortes Mining Corp has no effect on the direction of Microsoft i.e., Microsoft and Anacortes Mining go up and down completely randomly.
Pair Corralation between Microsoft and Anacortes Mining
If you would invest 40,764 in Microsoft on September 3, 2024 and sell it today you would earn a total of 1,582 from holding Microsoft or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Microsoft vs. Anacortes Mining Corp
Performance |
| Timeline |
| Microsoft |
| Anacortes Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Microsoft and Anacortes Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Anacortes Mining
The main advantage of trading using opposite Microsoft and Anacortes Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Anacortes Mining 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 Anacortes Mining will offset losses from the drop in Anacortes Mining's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Anacortes Mining vs. Liberty Gold Corp | Anacortes Mining vs. Lion One Metals | Anacortes Mining vs. Marvel Gold Limited | Anacortes Mining vs. GGX Gold 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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