Correlation Between Microsoft Corp and M Split
Can any of the company-specific risk be diversified away by investing in both Microsoft Corp and M Split 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 Corp and M Split into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft Corp CDR and M Split Corp, you can compare the effects of market volatilities on Microsoft Corp and M Split 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 Corp with a short position of M Split. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft Corp and M Split.
Diversification Opportunities for Microsoft Corp and M Split
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and XMF-A is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp CDR and M Split Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Split Corp and Microsoft Corp 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 Corp CDR are associated (or correlated) with M Split. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Split Corp has no effect on the direction of Microsoft Corp i.e., Microsoft Corp and M Split go up and down completely randomly.
Pair Corralation between Microsoft Corp and M Split
Assuming the 90 days trading horizon Microsoft Corp CDR is expected to under-perform the M Split. But the stock apears to be less risky and, when comparing its historical volatility, Microsoft Corp CDR is 8.29 times less risky than M Split. The stock trades about -0.09 of its potential returns per unit of risk. The M Split Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 50.00 in M Split Corp on August 25, 2025 and sell it today you would earn a total of 41.00 from holding M Split Corp or generate 82.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft Corp CDR vs. M Split Corp
Performance |
| Timeline |
| Microsoft Corp CDR |
| M Split Corp |
Microsoft Corp and M Split Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft Corp and M Split
The main advantage of trading using opposite Microsoft Corp and M Split positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft Corp position performs unexpectedly, M Split 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 M Split will offset losses from the drop in M Split's long position.| Microsoft Corp vs. Sylogist | Microsoft Corp vs. 01 Communique Laboratory | Microsoft Corp vs. Quarterhill | Microsoft Corp vs. Intermap Technologies Corp |
| M Split vs. US Financial 15 | M Split vs. Montfort Capital Corp | M Split vs. 49 North Resources | M Split vs. Valencia Capital |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |