- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between Microsoft Corporation and NIKKEI 225. You can compare the effects of market volatilities on Microsoft and NIKKEI 225 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 NIKKEI 225. See also your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and NIKKEI 225.
|Horizon||30 Days Login to change|
Predicted Return Density
Microsoft Corp. vs. NIKKEI 225
Given the investment horizon of 30 days, Microsoft Corporation is expected to generate 1.23 times more return on investment than NIKKEI 225. However, Microsoft is 1.23 times more volatile than NIKKEI 225. It trades about 0.18 of its potential returns per unit of risk. NIKKEI 225 is currently generating about 0.13 per unit of risk. If you would invest 10,771 in Microsoft Corporation on February 17, 2019 and sell it today you would earn a total of 986.00 from holding Microsoft Corporation or generate 9.15% return on investment over 30 days.
Pair Corralation between Microsoft and NIKKEI 225
|Time Period||2 Months [change]|
Diversification Opportunities for Microsoft and NIKKEI 225
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and NIKKEI 225 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NIKKEI 225 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 NIKKEI 225. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKEI 225 has no effect on the direction of Microsoft i.e. Microsoft and NIKKEI 225 go up and down completely randomly.