Correlation Between Microsoft and Tema Electrification
Can any of the company-specific risk be diversified away by investing in both Microsoft and Tema Electrification 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 Tema Electrification into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Tema Electrification ETF, you can compare the effects of market volatilities on Microsoft and Tema Electrification 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 Tema Electrification. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Tema Electrification.
Diversification Opportunities for Microsoft and Tema Electrification
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microsoft and Tema is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Tema Electrification ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema Electrification ETF 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 Tema Electrification. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema Electrification ETF has no effect on the direction of Microsoft i.e., Microsoft and Tema Electrification go up and down completely randomly.
Pair Corralation between Microsoft and Tema Electrification
If you would invest 47,197 in Microsoft on June 8, 2025 and sell it today you would earn a total of 2,303 from holding Microsoft or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Microsoft vs. Tema Electrification ETF
Performance |
| Timeline |
| Microsoft |
| Tema Electrification ETF |
Risk-Adjusted Performance
Solid
Weak | Strong |
Microsoft and Tema Electrification Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Tema Electrification
The main advantage of trading using opposite Microsoft and Tema Electrification positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Tema Electrification 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 Tema Electrification will offset losses from the drop in Tema Electrification's long position.| Microsoft vs. Palantir Technologies Class | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Oracle | Microsoft vs. CoreWeave, Class A |
| Tema Electrification vs. iShares Dividend and | Tema Electrification vs. Martin Currie Sustainable | Tema Electrification vs. AdvisorShares Gerber Kawasaki | Tema Electrification vs. Roundhill Ball Metaverse |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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