Correlation Between Microsoft and PACIFIC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Microsoft and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and PACIFIC.
Diversification Opportunities for Microsoft and PACIFIC
Very good diversification
The 3 months correlation between Microsoft and PACIFIC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Microsoft i.e., Microsoft and PACIFIC go up and down completely randomly.
Pair Corralation between Microsoft and PACIFIC
Given the investment horizon of 90 days Microsoft is expected to generate 1.82 times more return on investment than PACIFIC. However, Microsoft is 1.82 times more volatile than PACIFIC GAS ELECTRIC. It trades about 0.02 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about -0.16 per unit of risk. If you would invest 43,264 in Microsoft on September 23, 2024 and sell it today you would earn a total of 396.00 from holding Microsoft or generate 0.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 96.92% |
Values | Daily Returns |
Microsoft vs. PACIFIC GAS ELECTRIC
Performance |
Timeline |
Microsoft |
PACIFIC GAS ELECTRIC |
Microsoft and PACIFIC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and PACIFIC
The main advantage of trading using opposite Microsoft and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.Microsoft vs. BlackBerry | Microsoft vs. Global Blue Group | Microsoft vs. Aurora Mobile | Microsoft vs. Marqeta |
PACIFIC vs. Regeneron Pharmaceuticals | PACIFIC vs. Lindblad Expeditions Holdings | PACIFIC vs. Ryanair Holdings PLC | PACIFIC vs. JD Sports Fashion |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |