Correlation Between Microsoft and Aptech
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By analyzing existing cross correlation between Microsoft and Aptech Limited, you can compare the effects of market volatilities on Microsoft and Aptech 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 Aptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Aptech.
Diversification Opportunities for Microsoft and Aptech
Good diversification
The 3 months correlation between Microsoft and Aptech is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Aptech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptech Limited 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 Aptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptech Limited has no effect on the direction of Microsoft i.e., Microsoft and Aptech go up and down completely randomly.
Pair Corralation between Microsoft and Aptech
Given the investment horizon of 90 days Microsoft is expected to generate 0.43 times more return on investment than Aptech. However, Microsoft is 2.33 times less risky than Aptech. It trades about 0.06 of its potential returns per unit of risk. Aptech Limited is currently generating about -0.04 per unit of risk. If you would invest 36,812 in Microsoft on September 25, 2024 and sell it today you would earn a total of 6,960 from holding Microsoft or generate 18.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.58% |
Values | Daily Returns |
Microsoft vs. Aptech Limited
Performance |
Timeline |
Microsoft |
Aptech Limited |
Microsoft and Aptech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and Aptech
The main advantage of trading using opposite Microsoft and Aptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Aptech 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 Aptech will offset losses from the drop in Aptech's long position.Microsoft vs. BlackBerry | Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta |
Aptech vs. Reliance Industries Limited | Aptech vs. Oil Natural Gas | Aptech vs. ICICI Bank Limited | Aptech vs. Bharti Airtel 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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