Correlation Between Microsoft and Oxford Technology
Can any of the company-specific risk be diversified away by investing in both Microsoft and Oxford Technology 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 Oxford Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Oxford Technology 2, you can compare the effects of market volatilities on Microsoft and Oxford Technology 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 Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Oxford Technology.
Diversification Opportunities for Microsoft and Oxford Technology
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Microsoft and Oxford is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology 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 Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Microsoft i.e., Microsoft and Oxford Technology go up and down completely randomly.
Pair Corralation between Microsoft and Oxford Technology
If you would invest 41,879 in Microsoft on September 24, 2024 and sell it today you would earn a total of 1,781 from holding Microsoft or generate 4.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Microsoft vs. Oxford Technology 2
Performance |
Timeline |
Microsoft |
Oxford Technology |
Microsoft and Oxford Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and Oxford Technology
The main advantage of trading using opposite Microsoft and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology's long position.Microsoft vs. BlackBerry | Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta |
Oxford Technology vs. Ecclesiastical Insurance Office | Oxford Technology vs. Atalaya Mining | Oxford Technology vs. Beowulf Mining | Oxford Technology vs. Invesco Physical Silver |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Stocks Directory Find actively traded stocks across global markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |