Correlation Between Exceed and Microsoft

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Can any of the company-specific risk be diversified away by investing in both Exceed and Microsoft 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 Exceed and Microsoft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exceed Company and Microsoft, you can compare the effects of market volatilities on Exceed and Microsoft 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 Exceed with a short position of Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exceed and Microsoft.

Diversification Opportunities for Exceed and Microsoft

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Exceed and Microsoft is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exceed Company and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft and Exceed 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 Exceed Company are associated (or correlated) with Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Exceed i.e., Exceed and Microsoft go up and down completely randomly.

Pair Corralation between Exceed and Microsoft

If you would invest  29,169  in Microsoft on December 29, 2023 and sell it today you would earn a total of  12,903  from holding Microsoft or generate 44.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Exceed Company  vs.  Microsoft

 Performance 
       Timeline  
Exceed Company 

Risk-Adjusted Performance

0 of 100

 
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Very Weak
Over the last 90 days Exceed Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Exceed is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
Microsoft 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Microsoft may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Exceed and Microsoft Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Exceed and Microsoft

The main advantage of trading using opposite Exceed and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exceed position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.
The idea behind Exceed Company and Microsoft pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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