Correlation Between Microsoft and Beijing Cisri
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By analyzing existing cross correlation between Microsoft and Beijing Cisri Gaona, you can compare the effects of market volatilities on Microsoft and Beijing Cisri 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 Beijing Cisri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Beijing Cisri.
Diversification Opportunities for Microsoft and Beijing Cisri
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and Beijing is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Beijing Cisri Gaona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Cisri Gaona 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 Beijing Cisri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Cisri Gaona has no effect on the direction of Microsoft i.e., Microsoft and Beijing Cisri go up and down completely randomly.
Pair Corralation between Microsoft and Beijing Cisri
Given the investment horizon of 90 days Microsoft is expected to under-perform the Beijing Cisri. But the stock apears to be less risky and, when comparing its historical volatility, Microsoft is 2.4 times less risky than Beijing Cisri. The stock trades about -0.02 of its potential returns per unit of risk. The Beijing Cisri Gaona is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,495 in Beijing Cisri Gaona on September 25, 2024 and sell it today you would earn a total of 76.00 from holding Beijing Cisri Gaona or generate 5.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.8% |
Values | Daily Returns |
Microsoft vs. Beijing Cisri Gaona
Performance |
Timeline |
Microsoft |
Beijing Cisri Gaona |
Microsoft and Beijing Cisri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and Beijing Cisri
The main advantage of trading using opposite Microsoft and Beijing Cisri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Beijing Cisri 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 Beijing Cisri will offset losses from the drop in Beijing Cisri's long position.Microsoft vs. BlackBerry | Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta |
Beijing Cisri vs. New China Life | Beijing Cisri vs. Ming Yang Smart | Beijing Cisri vs. 159681 | Beijing Cisri vs. 159005 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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