Correlation Analysis Between Microsoft and Israel Index

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

 Predicted Return Density 
      Returns 

Microsoft Corp.  vs.  Israel Index

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Microsoft is expected to generate 1.03 times less return on investment than Israel Index. In addition to that, Microsoft is 1.3 times more volatile than Israel Index. It trades about 0.11 of its total potential returns per unit of risk. Israel Index is currently generating about 0.15 per unit of volatility. If you would invest  99,371  in Israel Index on October 15, 2019 and sell it today you would earn a total of  8,501  from holding Israel Index or generate 8.55% return on investment over 30 days.

Pair Corralation between Microsoft and Israel Index

0.51
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Microsoft and Israel Index

Microsoft Corp. diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and Israel Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Israel Index 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 Israel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Index has no effect on the direction of Microsoft i.e. Microsoft and Israel Index go up and down completely randomly.
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See also your portfolio center. Please also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.


 
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