Correlation Between Nicola Mining and Microsoft Corp
Can any of the company-specific risk be diversified away by investing in both Nicola Mining and Microsoft Corp 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 Nicola Mining and Microsoft Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Microsoft Corp CDR, you can compare the effects of market volatilities on Nicola Mining and Microsoft Corp 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 Nicola Mining with a short position of Microsoft Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Microsoft Corp.
Diversification Opportunities for Nicola Mining and Microsoft Corp
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nicola and Microsoft is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining and Microsoft Corp CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft Corp CDR and Nicola Mining 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 Nicola Mining are associated (or correlated) with Microsoft Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft Corp CDR has no effect on the direction of Nicola Mining i.e., Nicola Mining and Microsoft Corp go up and down completely randomly.
Pair Corralation between Nicola Mining and Microsoft Corp
Assuming the 90 days horizon Nicola Mining is expected to generate 2.28 times less return on investment than Microsoft Corp. In addition to that, Nicola Mining is 4.36 times more volatile than Microsoft Corp CDR. It trades about 0.02 of its total potential returns per unit of risk. Microsoft Corp CDR is currently generating about 0.22 per unit of volatility. If you would invest 3,113 in Microsoft Corp CDR on September 15, 2024 and sell it today you would earn a total of 156.00 from holding Microsoft Corp CDR or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicola Mining vs. Microsoft Corp CDR
Performance |
| Timeline |
| Nicola Mining |
| Microsoft Corp CDR |
Nicola Mining and Microsoft Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Microsoft Corp
The main advantage of trading using opposite Nicola Mining and Microsoft Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining position performs unexpectedly, Microsoft Corp 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 Microsoft Corp will offset losses from the drop in Microsoft Corp's long position.| Nicola Mining vs. Foraco International SA | Nicola Mining vs. Geodrill Limited | Nicola Mining vs. Major Drilling Group | Nicola Mining vs. Bri Chem Corp |
| Microsoft Corp vs. Nicola Mining | Microsoft Corp vs. Metalero Mining Corp | Microsoft Corp vs. Mako Mining Corp | Microsoft Corp vs. Evertz Technologies Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |