Correlation Analysis Between Microsoft and Kingtone Wirelessinfo

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

Microsoft Corp.  vs.  Kingtone Wirelessinfo Solution

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Microsoft is expected to generate 6.57 times less return on investment than Kingtone Wirelessinfo. But when comparing it to its historical volatility, Microsoft Corporation is 1.97 times less risky than Kingtone Wirelessinfo. It trades about 0.09 of its potential returns per unit of risk. Kingtone Wirelessinfo Solution Holding Ltd is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  634.00  in Kingtone Wirelessinfo Solution Holding Ltd on July 18, 2018 and sell it today you would earn a total of  116.00  from holding Kingtone Wirelessinfo Solution Holding Ltd or generate 18.3% return on investment over 30 days.

Pair Corralation between Microsoft and Kingtone Wirelessinfo

0.42
Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy95.65%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and Kingtone Wirelessinfo Solution in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kingtone Wirelessinfo 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 Kingtone Wirelessinfo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingtone Wirelessinfo has no effect on the direction of Microsoft i.e. Microsoft and Kingtone Wirelessinfo go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Microsoft  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.
Kingtone Wirelessinfo  
20 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kingtone Wirelessinfo Solution Holding Ltd are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.

My Equities

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1214.38

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