- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between Microsoft Corporation and NZSE. You can compare the effects of market volatilities on Microsoft and NZSE 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 NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and NZSE.
|Horizon||30 Days Login to change|
Predicted Return Density
Microsoft Corp. vs. NZSE
Given the investment horizon of 30 days, Microsoft Corporation is expected to generate 2.62 times more return on investment than NZSE. However, Microsoft is 2.62 times more volatile than NZSE. It trades about 0.18 of its potential returns per unit of risk. NZSE is currently generating about 0.27 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 NZSE
|Time Period||2 Months [change]|
Diversification Opportunities for Microsoft and NZSE
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and NZSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NZSE 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 NZSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NZSE has no effect on the direction of Microsoft i.e. Microsoft and NZSE go up and down completely randomly.