Correlation Analysis Between Amdocs and Microsoft

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

Amdocs Limited  vs.  Microsoft Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Amdocs is expected to generate 5.31 times less return on investment than Microsoft. But when comparing it to its historical volatility, Amdocs Limited is 2.31 times less risky than Microsoft. It trades about 0.12 of its potential returns per unit of risk. Microsoft Corporation is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  10,687  in Microsoft Corporation on August 20, 2018 and sell it today you would earn a total of  653.00  from holding Microsoft Corporation or generate 6.11% return on investment over 30 days.

Pair Corralation between Amdocs and Microsoft

-0.57
Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy87.5%
ValuesDaily Returns

Diversification

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Amdocs Limited and Microsoft Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Microsoft and Amdocs 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 Amdocs Limited 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 Amdocs i.e. Amdocs and Microsoft go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Amdocs Limited  
7 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Amdocs Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.
Microsoft  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1169.73

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