Correlation Between Microsoft and Mainstay Winslow

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

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

Diversification Opportunities for Microsoft and Mainstay Winslow

0.52

Correlation Coefficient

Microsoft  Mainstay Winslow

Very weak diversification

The 3 months correlation between Microsoft and Mainstay is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large 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 Mainstay Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Microsoft i.e., Microsoft and Mainstay Winslow go up and down completely randomly.

Pair Corralation between Microsoft and Mainstay Winslow

Given the investment horizon of 90 days Microsoft is expected to generate 0.42 times more return on investment than Mainstay Winslow. However, Microsoft is 2.4 times less risky than Mainstay Winslow. It trades about -0.02 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about -0.1 per unit of risk. If you would invest  50,007  in Microsoft on September 11, 2025 and sell it today you would lose (805.00) from holding Microsoft or give up 1.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Microsoft  vs.  Mainstay Winslow Large

Microsoft

Risk-Adjusted Performance

Weakest

Over the last 90 days Microsoft has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Mainstay Winslow Large

Risk-Adjusted Performance

Weakest

Over the last 90 days Mainstay Winslow Large has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's primary indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Microsoft and Mainstay Winslow

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

The idea behind Microsoft and Mainstay Winslow Large 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.