This module allows you to analyze existing cross correlation between Microsoft Corporation and Alphabet. You can compare the effects of market volatilities on Microsoft and Alphabet 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 Alphabet. See also your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Alphabet.
|Time Horizon||30 Days Login to change|
Microsoft Corp. vs. Alphabet Inc
Given the investment horizon of 30 days, Microsoft is expected to generate 2.69 times less return on investment than Alphabet. But when comparing it to its historical volatility, Microsoft Corporation is 1.39 times less risky than Alphabet. It trades about 0.17 of its potential returns per unit of risk. Alphabet is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 107,958 in Alphabet on May 20, 2018 and sell it today you would earn a total of 8,856 from holding Alphabet or generate 8.2% return on investment over 30 days.