Microsoft Correlations

MSF Stock

EUR 355.50 6.15 1.76%

The current 90-days correlation between Microsoft and Cardinal Health is 0.01 (i.e., Significant diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Microsoft Correlation With Market

Good diversification

The correlation between Microsoft and DJI is -0.19 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microsoft - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microsoft to buy it.

Moving together with Microsoft Stock

0.61	APC	Apple Inc	Pair Corr
0.62	APC	Apple Inc	Pair Corr
0.62	APC	Apple Inc	Pair Corr
0.88	MSF	Microsoft	Pair Corr
1.0	MSF	Microsoft	Pair Corr
0.99	MSF	Microsoft	Pair Corr
1.0	MSF	Microsoft	Pair Corr
0.88	AMZ	Amazon Inc	Pair Corr
0.81	KBIA	KB Financial Group	Pair Corr
0.66	OIX	ORIX	Pair Corr
0.73	SID	State Bank	Pair Corr
0.73	DBPD	Xtrackers ShortDAX	Pair Corr

Moving against Microsoft Stock

0.86	TKDA	Takeda Pharmaceutical	Pair Corr
0.78	LLD2	Lloyds Banking Group	Pair Corr
0.69	DBPE	Xtrackers LevDAX	Pair Corr
0.59	W8V	Bank of China Limited Earnings Call This Week	Pair Corr
0.57	SUMB	SUMITOMO P SP	Pair Corr
0.55	E908	Lyxor 1	Pair Corr

Related Correlations Analysis

	DVY	CLH	WX6	CLH	SZL	93M1	CE1	IHCB
DVY		0.77	-0.31	0.73	0.42	0.11	0.72	0.1	DVY
CLH	0.77		-0.06	0.9	0.27	0.11	0.54	0.23	CLH
WX6	-0.31	-0.06		-0.12	-0.56	-0.24	-0.47	0.23	WX6
CLH	0.73	0.9	-0.12		0.31	0.18	0.51	0.22	CLH
SZL	0.42	0.27	-0.56	0.31		0.42	0.69	-0.59	SZL
93M1	0.11	0.11	-0.24	0.18	0.42		0.2	-0.17	93M1
CE1	0.72	0.54	-0.47	0.51	0.69	0.2		-0.45	CE1
IHCB	0.1	0.23	0.23	0.22	-0.59	-0.17	-0.45		IHCB
	DVY	CLH	WX6	CLH	SZL	93M1	CE1	IHCB

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

CLH	+ 0.9	CLH
CLH	+ 0.77	DVY
CLH	+ 0.73	DVY
CE1	+ 0.72	DVY
CE1	+ 0.69	SZL
CE1	+ 0.54	CLH

High negative correlations

IHCB	- 0.59	SZL
SZL	- 0.56	WX6
CE1	- 0.47	WX6
IHCB	- 0.45	CE1
WX6	- 0.31	DVY
93M1	- 0.24	WX6

Risk-Adjusted Indicators

There is a big difference between Microsoft Stock performing well and Microsoft Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Microsoft's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
DVY	1.91	0.11	0.06	0.88	2.27	(2.47)	4.30	(4.72)	15.81
CLH	0.96	0.12	0.13	0.30	1.22	(1.03)	2.59	(2.26)	7.57
WX6	1.35	0.09	0.09	(0.55)	1.50	(1.70)	2.96	(2.29)	7.44
CLH	0.64	0.12	0.14	1.39	0.88	(0.74)	1.52	(1.36)	5.34
SZL	1.77	(0.06)	0.00	(2.96)	0.00	0.00	4.19	(3.03)	11.97
93M1	0.92	0.03	0.06	0.07	1.03	(1.47)	1.80	(1.72)	7.84
CE1	1.41	(0.12)	0.00	(0.43)	0.00	0.00	2.43	(3.39)	9.14
IHCB	1.34	0.24	0.22	(0.65)	1.26	(1.53)	3.30	(2.41)	12.00

Be your own money manager

Our tools can tell you how much better you can do entering a position in Microsoft without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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