Correlation Between Microsoft and MicroCloud Hologram
Can any of the company-specific risk be diversified away by investing in both Microsoft and MicroCloud Hologram 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 MicroCloud Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and MicroCloud Hologram, you can compare the effects of market volatilities on Microsoft and MicroCloud Hologram 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 MicroCloud Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and MicroCloud Hologram.
Diversification Opportunities for Microsoft and MicroCloud Hologram
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microsoft and MicroCloud is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and MicroCloud Hologram in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroCloud Hologram 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 MicroCloud Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroCloud Hologram has no effect on the direction of Microsoft i.e., Microsoft and MicroCloud Hologram go up and down completely randomly.
Pair Corralation between Microsoft and MicroCloud Hologram
Given the investment horizon of 90 days Microsoft is expected to generate 13.05 times less return on investment than MicroCloud Hologram. But when comparing it to its historical volatility, Microsoft is 11.76 times less risky than MicroCloud Hologram. It trades about 0.03 of its potential returns per unit of risk. MicroCloud Hologram is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 17.00 in MicroCloud Hologram on July 16, 2025 and sell it today you would lose (3.00) from holding MicroCloud Hologram or give up 17.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Microsoft vs. MicroCloud Hologram
Performance |
| Timeline |
| Microsoft |
| MicroCloud Hologram |
Microsoft and MicroCloud Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and MicroCloud Hologram
The main advantage of trading using opposite Microsoft and MicroCloud Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, MicroCloud Hologram 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 MicroCloud Hologram will offset losses from the drop in MicroCloud Hologram's long position.| Microsoft vs. Zscaler | Microsoft vs. Cloudflare | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Okta Inc |
| MicroCloud Hologram vs. MicroCloud Hologram | MicroCloud Hologram vs. Universal Display | MicroCloud Hologram vs. BuzzFeed | MicroCloud Hologram vs. Arbe Robotics Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
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