Correlation Analysis Between Microsoft and Exxon

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

Comparative Performance

Microsoft  
00

Risk-Adjusted Performance

Over the last 30 days Microsoft Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively unchanging essential indicators, Microsoft is not utilizing all of its potentials. The prevalent stock price uproar, may contribute to short horizon losses for the leadership.
Exxon Mobil  
00

Risk-Adjusted Performance

Over the last 30 days Exxon Mobil Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Exxon is not utilizing all of its potentials. The existing stock price chaos, may contribute to medium term losses for the stakeholders.

Microsoft and Exxon Volatility Contrast

 Predicted Return Density 
      Returns 

Microsoft Corp.  vs.  Exxon Mobil Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Microsoft Corporation is expected to generate 1.04 times more return on investment than Exxon. However, Microsoft is 1.04 times more volatile than Exxon Mobil Corporation. It trades about 0.01 of its potential returns per unit of risk. Exxon Mobil Corporation is currently generating about -0.07 per unit of risk. If you would invest  13,834  in Microsoft Corporation on September 21, 2019 and sell it today you would earn a total of  9.00  from holding Microsoft Corporation or generate 0.07% return on investment over 30 days.

Pair Corralation between Microsoft and Exxon

0.38
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Microsoft and Exxon

Microsoft Corp. diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and Exxon Mobil Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil 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 Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil has no effect on the direction of Microsoft i.e. Microsoft and Exxon go up and down completely randomly.
See also your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
Search macroaxis.com