Correlation Analysis Between Microsoft and XU100

This module allows you to analyze existing cross correlation between Microsoft Corporation and XU100. You can compare the effects of market volatilities on Microsoft and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and XU100.
Horizon     30 Days    Login   to change
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Comparative Performance

Microsoft Corp.  vs.  XU100

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Microsoft is expected to generate 3.25 times less return on investment than XU100. But when comparing it to its historical volatility, Microsoft Corporation is 1.52 times less risky than XU100. It trades about 0.15 of its potential returns per unit of risk. XU100 is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  8,530,958  in XU100 on June 20, 2019 and sell it today you would earn a total of  1,625,667  from holding XU100 or generate 19.06% return on investment over 30 days.

Pair Corralation between Microsoft and XU100

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Microsoft and XU100

Microsoft Corp. diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and XU100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on XU100 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 XU100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XU100 has no effect on the direction of Microsoft i.e. Microsoft and XU100 go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Correlation module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins and exchanges.