Correlation Between Microsoft and YTO Express
Can any of the company-specific risk be diversified away by investing in both Microsoft and YTO Express 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 YTO Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and YTO Express Holdings, you can compare the effects of market volatilities on Microsoft and YTO Express 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 YTO Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and YTO Express.
Diversification Opportunities for Microsoft and YTO Express
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Microsoft and YTO is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and YTO Express Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YTO Express Holdings 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 YTO Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YTO Express Holdings has no effect on the direction of Microsoft i.e., Microsoft and YTO Express go up and down completely randomly.
Pair Corralation between Microsoft and YTO Express
Given the investment horizon of 90 days Microsoft is expected to generate 0.14 times more return on investment than YTO Express. However, Microsoft is 6.99 times less risky than YTO Express. It trades about -0.03 of its potential returns per unit of risk. YTO Express Holdings is currently generating about -0.12 per unit of risk. If you would invest 50,418 in Microsoft on August 30, 2025 and sell it today you would lose (1,217) from holding Microsoft or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Microsoft vs. YTO Express Holdings
Performance |
| Timeline |
| Microsoft |
| YTO Express Holdings |
Microsoft and YTO Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and YTO Express
The main advantage of trading using opposite Microsoft and YTO Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, YTO Express 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 YTO Express will offset losses from the drop in YTO Express' long position.| Microsoft vs. C3 Metals | Microsoft vs. Dynasty Fine Wines | Microsoft vs. National Storage REIT | Microsoft vs. Fidelity National Information |
| YTO Express vs. Pebblebrook Hotel Trust | YTO Express vs. Hyatt Hotels | YTO Express vs. Surf Air Mobility | YTO Express vs. Fair Isaac |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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