Correlation Between CardieX and Microsoft
Can any of the company-specific risk be diversified away by investing in both CardieX and Microsoft 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 CardieX and Microsoft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CardieX Limited and Microsoft, you can compare the effects of market volatilities on CardieX and Microsoft 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 CardieX with a short position of Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of CardieX and Microsoft.
Diversification Opportunities for CardieX and Microsoft
Pay attention - limited upside
The 3 months correlation between CardieX and Microsoft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CardieX Limited and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft and CardieX 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 CardieX Limited are associated (or correlated) with Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of CardieX i.e., CardieX and Microsoft go up and down completely randomly.
Pair Corralation between CardieX and Microsoft
If you would invest 0.00 in CardieX Limited on January 17, 2024 and sell it today you would earn a total of 0.00 from holding CardieX Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
CardieX Limited vs. Microsoft
Performance |
| Timeline |
| CardieX Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Microsoft |
CardieX and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CardieX and Microsoft
The main advantage of trading using opposite CardieX and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CardieX position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| CardieX vs. US GoldMining Common | CardieX vs. Amkor Technology | CardieX vs. Vindicator Silver Lead Mining | CardieX vs. Analog Devices |
| Microsoft vs. Cloudflare | Microsoft vs. Okta Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Nutanix |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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