This module allows you to analyze existing cross correlation between Red Hat and Microsoft Corporation. You can compare the effects of market volatilities on Red Hat 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 Red Hat with a short position of Microsoft. See also your portfolio center. Please also check ongoing floating volatility patterns of Red Hat and Microsoft.
|Time Horizon||30 Days Login to change|
Red Hat Inc vs. Microsoft Corp.
Considering 30-days investment horizon, Red Hat is expected to generate 1.6 times more return on investment than Microsoft. However, Red Hat is 1.6 times more volatile than Microsoft Corporation. It trades about 0.26 of its potential returns per unit of risk. Microsoft Corporation is currently generating about 0.16 per unit of risk. If you would invest 16,299 in Red Hat on May 19, 2018 and sell it today you would earn a total of 1,101 from holding Red Hat or generate 6.76% return on investment over 30 days.