Correlation Between Microsoft and CURI

Can any of the company-specific risk be diversified away by investing in both Microsoft and CURI 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 CURI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Microsoft and CURI, you can compare the effects of market volatilities on Microsoft and CURI 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 CURI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and CURI.

Diversification Opportunities for Microsoft and CURI

0.0

Correlation Coefficient

Microsoft  CURI

Pay attention - limited upside

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

Pair Corralation between Microsoft and CURI

If you would invest  49,802  in Microsoft on July 3, 2025 and sell it today you would earn a total of  1,658  from holding Microsoft or generate 3.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Microsoft  vs.  CURI

Microsoft

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Microsoft is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

CURI

Risk-Adjusted Performance

Weakest

Over the last 90 days CURI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, CURI is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Microsoft and CURI

The main advantage of trading using opposite Microsoft and CURI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, CURI 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 CURI will offset losses from the drop in CURI's long position.

The idea behind Microsoft and CURI 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.