Correlation Analysis Between Microsoft and ISEQ

This module allows you to analyze existing cross correlation between Microsoft Corporation and ISEQ. You can compare the effects of market volatilities on Microsoft and ISEQ 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 ISEQ. See also your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and ISEQ.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

 Predicted Return Density 
      Returns 

Microsoft Corp.  vs.  ISEQ

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Microsoft is expected to generate 2.52 times less return on investment than ISEQ. But when comparing it to its historical volatility, Microsoft Corporation is 1.21 times less risky than ISEQ. It trades about 0.08 of its potential returns per unit of risk. ISEQ is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  585,108  in ISEQ on October 12, 2019 and sell it today you would earn a total of  98,874  from holding ISEQ or generate 16.9% return on investment over 30 days.

Pair Corralation between Microsoft and ISEQ

0.79
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Microsoft and ISEQ

Microsoft Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and ISEQ in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ISEQ 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 Corporation are associated (or correlated) with ISEQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISEQ has no effect on the direction of Microsoft i.e. Microsoft and ISEQ go up and down completely randomly.
    Optimize
See also your portfolio center. Please also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.


 
Search macroaxis.com