Correlation Analysis Between Twitter and Microsoft

This module allows you to analyze existing cross correlation between Twitter and Microsoft Corporation. You can compare the effects of market volatilities on Twitter 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 Twitter with a short position of Microsoft. See also your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Microsoft.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Twitter  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively conflicting forward-looking signals, Twitter reported solid returns over the last few months and may actually be approaching a breakup point.
Microsoft  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unchanging essential indicators, Microsoft is not utilizing all of its potentials. The continuing stock price uproar, may contribute to short horizon losses for the leadership.

Twitter and Microsoft Volatility Contrast

 Predicted Return Density 
      Returns 

Twitter Inc  vs.  Microsoft Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Twitter is expected to generate 1.68 times more return on investment than Microsoft. However, Twitter is 1.68 times more volatile than Microsoft Corporation. It trades about 0.16 of its potential returns per unit of risk. Microsoft Corporation is currently generating about 0.03 per unit of risk. If you would invest  3,558  in Twitter on August 21, 2019 and sell it today you would earn a total of  807.00  from holding Twitter or generate 22.68% return on investment over 30 days.

Pair Corralation between Twitter and Microsoft

0.44
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Twitter and Microsoft

Twitter Inc diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Twitter Inc and Microsoft Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Microsoft and Twitter 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 Twitter are associated (or correlated) with Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Twitter i.e. Twitter and Microsoft go up and down completely randomly.
See also your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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