Correlation Analysis Between Microsoft and NQTH

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

 Predicted Return Density 
      Returns 

Microsoft Corp.  vs.  NQTH

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Microsoft Corporation is expected to generate 1.23 times more return on investment than NQTH. However, Microsoft is 1.23 times more volatile than NQTH. It trades about 0.08 of its potential returns per unit of risk. NQTH is currently generating about -0.05 per unit of risk. If you would invest  13,765  in Microsoft Corporation on October 12, 2019 and sell it today you would earn a total of  853.00  from holding Microsoft Corporation or generate 6.2% return on investment over 30 days.

Pair Corralation between Microsoft and NQTH

-0.55
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy92.31%
ValuesDaily Returns

Diversification Opportunities for Microsoft and NQTH

Microsoft Corp. diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and NQTH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQTH 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 NQTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQTH has no effect on the direction of Microsoft i.e. Microsoft and NQTH go up and down completely randomly.
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See also your portfolio center. Please also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .


 
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