Correlation Between Microsoft and Qed Connect

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Microsoft and Qed Connect 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 Qed Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Qed Connect, you can compare the effects of market volatilities on Microsoft and Qed Connect 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 Qed Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Qed Connect.

Diversification Opportunities for Microsoft and Qed Connect

MicrosoftQedDiversified AwayMicrosoftQedDiversified Away100%
0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Microsoft and Qed is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Qed Connect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qed Connect 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 Qed Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qed Connect has no effect on the direction of Microsoft i.e., Microsoft and Qed Connect go up and down completely randomly.

Pair Corralation between Microsoft and Qed Connect

Given the investment horizon of 90 days Microsoft is expected to under-perform the Qed Connect. But the stock apears to be less risky and, when comparing its historical volatility, Microsoft is 33.46 times less risky than Qed Connect. The stock trades about -0.21 of its potential returns per unit of risk. The Qed Connect is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Qed Connect on December 1, 2024 and sell it today you would earn a total of  0.01  from holding Qed Connect or generate 100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Microsoft  vs.  Qed Connect

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -80-60-40-20020
JavaScript chart by amCharts 3.21.15MSFT QEDN
       Timeline  
Microsoft 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Microsoft has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb390400410420430440450
Qed Connect 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Qed Connect are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting fundamental indicators, Qed Connect displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFeb0.00010.000150.00020.000250.00030.000350.0004

Microsoft and Qed Connect Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.41-1.83-1.25-0.67-0.090.491.071.652.232.81 0.050.100.15
JavaScript chart by amCharts 3.21.15MSFT QEDN
       Returns  

Pair Trading with Microsoft and Qed Connect

The main advantage of trading using opposite Microsoft and Qed Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Qed Connect 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 Qed Connect will offset losses from the drop in Qed Connect's long position.
The idea behind Microsoft and Qed Connect pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Equity Valuation
Check real value of public entities based on technical and fundamental data
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges


 

Trending Assets

DMCS
Datvest Modified Consumer
3.00  0.00  0.00 
CAFCA
CAFCA LIMITED
2,000  200.00  11.11 
NULL
Nedbank Group Limited
0.00  0.00  0.00 
EHZL
ECOCASH HOLDINGS ZIMBABWE
16.00  1.30  8.84 
WILD
WILLDALE LIMITED
2.87  0.37  14.80 
SACL
STAR AFRICA PORATION
3.50  0.51  17.06 
ZBFH
ZB FINANCIAL HOLDINGS
400.03  47.44  13.45 
TIG
Tigere Real Estate
111.27  -0.73  -0.65 
RIOZ
RIO ZIM LIMITED
106.90  0.00  0.00