Correlation Between Microsoft and Robex Resources

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

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

Diversification Opportunities for Microsoft and Robex Resources

0.04

Correlation Coefficient

Microsoft  Robex Resources

Significant diversification

The 3 months correlation between Microsoft and Robex is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources 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 Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of Microsoft i.e., Microsoft and Robex Resources go up and down completely randomly.

Pair Corralation between Microsoft and Robex Resources

Given the investment horizon of 90 days Microsoft is expected to generate 2.13 times less return on investment than Robex Resources. But when comparing it to its historical volatility, Microsoft is 2.08 times less risky than Robex Resources. It trades about 0.05 of its potential returns per unit of risk. Robex Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  240.00  in Robex Resources on June 30, 2025 and sell it today you would earn a total of  14.00  from holding Robex Resources or generate 5.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Microsoft  vs.  Robex Resources

Microsoft

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft are ranked lower than 3 (%) 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.

Robex Resources

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Robex Resources are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, Robex Resources may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Microsoft and Robex Resources

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

The idea behind Microsoft and Robex Resources 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.