Correlation Between Microsoft and INTERNATIONAL BREWERIES
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By analyzing existing cross correlation between Microsoft and INTERNATIONAL BREWERIES PLC, you can compare the effects of market volatilities on Microsoft and INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and INTERNATIONAL BREWERIES.
Diversification Opportunities for Microsoft and INTERNATIONAL BREWERIES
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Microsoft and INTERNATIONAL is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and INTERNATIONAL BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL BREWERIES has no effect on the direction of Microsoft i.e., Microsoft and INTERNATIONAL BREWERIES go up and down completely randomly.
Pair Corralation between Microsoft and INTERNATIONAL BREWERIES
Given the investment horizon of 90 days Microsoft is expected to generate 3.43 times less return on investment than INTERNATIONAL BREWERIES. But when comparing it to its historical volatility, Microsoft is 4.31 times less risky than INTERNATIONAL BREWERIES. It trades about 0.16 of its potential returns per unit of risk. INTERNATIONAL BREWERIES PLC is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 965.00 in INTERNATIONAL BREWERIES PLC on June 2, 2025 and sell it today you would earn a total of 300.00 from holding INTERNATIONAL BREWERIES PLC or generate 31.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Microsoft vs. INTERNATIONAL BREWERIES PLC
Performance |
| Timeline |
| Microsoft |
| INTERNATIONAL BREWERIES |
Microsoft and INTERNATIONAL BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and INTERNATIONAL BREWERIES
The main advantage of trading using opposite Microsoft and INTERNATIONAL BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES will offset losses from the drop in INTERNATIONAL BREWERIES's long position.| Microsoft vs. Palantir Technologies Class | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Oracle | Microsoft vs. CoreWeave, Class A |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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