Correlation Analysis Between Twitter and Microsoft

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

Twitter  
00

Risk-Adjusted Performance

Over the last 30 days Twitter has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Twitter is not utilizing all of its potentials. The late stock price agitation, may contribute to short term losses for the management.
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.

Twitter and Microsoft Volatility Contrast

 Predicted Return Density 
      Returns 

Twitter Inc  vs.  Microsoft Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Twitter is expected to generate 1.66 times more return on investment than Microsoft. However, Twitter is 1.66 times more volatile than Microsoft Corporation. It trades about 0.01 of its potential returns per unit of risk. Microsoft Corporation is currently generating about -0.02 per unit of risk. If you would invest  3,873  in Twitter on September 22, 2019 and sell it today you would earn a total of  8.00  from holding Twitter or generate 0.21% return on investment over 30 days.

Pair Corralation between Twitter and Microsoft

0.08
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Twitter and Microsoft

Twitter Inc diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding Twitter Inc and Microsoft Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Microsoft and Twitter 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 Twitter are associated (or correlated) with Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Twitter i.e. Twitter and Microsoft go up and down completely randomly.
See also your portfolio center. Please also try Pattern Recognition module to use different pattern recognition models to time the market across multiple global exchanges.


 
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