Correlation Between Microsoft and Janus Asia

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Can any of the company-specific risk be diversified away by investing in both Microsoft and Janus Asia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Microsoft and Janus Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Janus Asia Equity, you can compare the effects of market volatilities on Microsoft and Janus Asia 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 Janus Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Janus Asia.

Diversification Opportunities for Microsoft and Janus Asia

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Microsoft and Janus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and JANUS ASIA EQUITY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Asia Equity 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 are associated (or correlated) with Janus Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Asia Equity has no effect on the direction of Microsoft i.e., Microsoft and Janus Asia go up and down completely randomly.

Pair Corralation between Microsoft and Janus Asia

If you would invest  33,393  in Microsoft on December 30, 2023 and sell it today you would earn a total of  8,679  from holding Microsoft or generate 25.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Microsoft  vs.  JANUS ASIA EQUITY

 Performance 
       Timeline  
Microsoft 

Risk-Adjusted Performance

14 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Microsoft unveiled solid returns over the last few months and may actually be approaching a breakup point.
Janus Asia Equity 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Modest
Over the last 90 days Janus Asia Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Janus Asia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Microsoft and Janus Asia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Microsoft and Janus Asia

The main advantage of trading using opposite Microsoft and Janus Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Janus Asia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Janus Asia will offset losses from the drop in Janus Asia's long position.
The idea behind Microsoft and Janus Asia Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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