Correlation Between Microsoft and Intech Us
Can any of the company-specific risk be diversified away by investing in both Microsoft and Intech Us 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 Intech Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Intech Managed Volatility, you can compare the effects of market volatilities on Microsoft and Intech Us 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 Intech Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Intech Us.
Diversification Opportunities for Microsoft and Intech Us
Almost no diversification
The 3 months correlation between Microsoft and Intech is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility 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 Intech Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Microsoft i.e., Microsoft and Intech Us go up and down completely randomly.
Pair Corralation between Microsoft and Intech Us
Given the investment horizon of 90 days Microsoft is expected to generate 1.65 times more return on investment than Intech Us. However, Microsoft is 1.65 times more volatile than Intech Managed Volatility. It trades about 0.4 of its potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.28 per unit of risk. If you would invest 36,711 in Microsoft on April 17, 2025 and sell it today you would earn a total of 13,871 from holding Microsoft or generate 37.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
Microsoft vs. Intech Managed Volatility
Performance |
| Timeline |
| Microsoft |
| Intech Managed Volatility |
Microsoft and Intech Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Intech Us
The main advantage of trading using opposite Microsoft and Intech Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Intech Us 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 Intech Us will offset losses from the drop in Intech Us' long position.| Microsoft vs. Palantir Technologies Class | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Oracle | Microsoft vs. CoreWeave, Class A |
| Intech Us vs. Janus Forty Fund | Intech Us vs. Janus High Yield Fund | Intech Us vs. Janus Research Fund | Intech Us vs. Intech Managed Volatility |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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