Correlation Between Microsoft and Hengli Petrochemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and Hengli Petrochemical Co, you can compare the effects of market volatilities on Microsoft and Hengli Petrochemical 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 Hengli Petrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Hengli Petrochemical.
Diversification Opportunities for Microsoft and Hengli Petrochemical
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Hengli is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Hengli Petrochemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Petrochemical 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 Hengli Petrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Petrochemical has no effect on the direction of Microsoft i.e., Microsoft and Hengli Petrochemical go up and down completely randomly.
Pair Corralation between Microsoft and Hengli Petrochemical
Given the investment horizon of 90 days Microsoft is expected to generate 0.83 times more return on investment than Hengli Petrochemical. However, Microsoft is 1.21 times less risky than Hengli Petrochemical. It trades about 0.09 of its potential returns per unit of risk. Hengli Petrochemical Co is currently generating about 0.0 per unit of risk. If you would invest 23,571 in Microsoft on September 24, 2024 and sell it today you would earn a total of 20,089 from holding Microsoft or generate 85.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.18% |
Values | Daily Returns |
Microsoft vs. Hengli Petrochemical Co
Performance |
Timeline |
Microsoft |
Hengli Petrochemical |
Microsoft and Hengli Petrochemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and Hengli Petrochemical
The main advantage of trading using opposite Microsoft and Hengli Petrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Hengli Petrochemical 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 Hengli Petrochemical will offset losses from the drop in Hengli Petrochemical's long position.Microsoft vs. BlackBerry | Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta |
Hengli Petrochemical vs. Zijin Mining Group | Hengli Petrochemical vs. Wanhua Chemical Group | Hengli Petrochemical vs. Baoshan Iron Steel | Hengli Petrochemical vs. Shandong Gold Mining |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
CEOs Directory Screen CEOs from public companies around the world | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Equity Valuation Check real value of public entities based on technical and fundamental data |