Correlation Between Microsoft and Catalyst/map Global
Can any of the company-specific risk be diversified away by investing in both Microsoft and Catalyst/map Global 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 Catalyst/map Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Catalystmap Global Equity, you can compare the effects of market volatilities on Microsoft and Catalyst/map Global 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 Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Catalyst/map Global.
Diversification Opportunities for Microsoft and Catalyst/map Global
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and Catalyst/map is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Catalystmap Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global 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 Catalyst/map Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmap Global Equity has no effect on the direction of Microsoft i.e., Microsoft and Catalyst/map Global go up and down completely randomly.
Pair Corralation between Microsoft and Catalyst/map Global
Given the investment horizon of 90 days Microsoft is expected to under-perform the Catalyst/map Global. In addition to that, Microsoft is 1.3 times more volatile than Catalystmap Global Equity. It trades about -0.09 of its total potential returns per unit of risk. Catalystmap Global Equity is currently generating about 0.18 per unit of volatility. If you would invest 1,782 in Catalystmap Global Equity on October 11, 2025 and sell it today you would earn a total of 185.00 from holding Catalystmap Global Equity or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. Catalystmap Global Equity
Performance |
| Timeline |
| Microsoft |
| Catalystmap Global Equity |
Microsoft and Catalyst/map Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Catalyst/map Global
The main advantage of trading using opposite Microsoft and Catalyst/map Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Catalyst/map Global 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 Catalyst/map Global will offset losses from the drop in Catalyst/map Global's long position.The idea behind Microsoft and Catalystmap Global 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.| Catalyst/map Global vs. T Rowe Price | Catalyst/map Global vs. Delaware Minnesota High Yield | Catalyst/map Global vs. Ab High Income | Catalyst/map Global vs. Gmo High Yield |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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