Correlation Between Microsoft and Psagot Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and Psagot Index Funds, you can compare the effects of market volatilities on Microsoft and Psagot Index 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 Psagot Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Psagot Index.
Diversification Opportunities for Microsoft and Psagot Index
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and Psagot is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Psagot Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psagot Index Funds 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 Psagot Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psagot Index Funds has no effect on the direction of Microsoft i.e., Microsoft and Psagot Index go up and down completely randomly.
Pair Corralation between Microsoft and Psagot Index
Given the investment horizon of 90 days Microsoft is expected to generate 0.74 times more return on investment than Psagot Index. However, Microsoft is 1.36 times less risky than Psagot Index. It trades about 0.21 of its potential returns per unit of risk. Psagot Index Funds is currently generating about -0.32 per unit of risk. If you would invest 41,298 in Microsoft on March 14, 2024 and sell it today you would earn a total of 1,970 from holding Microsoft or generate 4.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 71.43% |
Values | Daily Returns |
Microsoft vs. Psagot Index Funds
Performance |
Timeline |
Microsoft |
Psagot Index Funds |
Microsoft and Psagot Index Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microsoft and Psagot Index
The main advantage of trading using opposite Microsoft and Psagot Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Psagot Index 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 Psagot Index will offset losses from the drop in Psagot Index's long position.Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Cloudflare |
Psagot Index vs. Brainsway | Psagot Index vs. Aura Smart Air | Psagot Index vs. Mivne Real Estate | Psagot Index vs. Photomyne |
Check out your portfolio center.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.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
CEOs Directory Screen CEOs from public companies around the world | |
Fundamental Analysis View fundamental data based on most recent published financial statements |