Correlation Between 3I Group and Microsoft Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both 3I Group and Microsoft Corp 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 3I Group and Microsoft Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3I Group Plc and Microsoft Corp, you can compare the effects of market volatilities on 3I Group and Microsoft Corp 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 3I Group with a short position of Microsoft Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3I Group and Microsoft Corp.

Diversification Opportunities for 3I Group and Microsoft Corp

  Correlation Coefficient

Weak diversification

The 3 months correlation between TGOPF and Microsoft is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding 3I Group Plc and Microsoft Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft Corp and 3I Group 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 3I Group Plc are associated (or correlated) with Microsoft Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft Corp has no effect on the direction of 3I Group i.e., 3I Group and Microsoft Corp go up and down completely randomly.

Pair Corralation between 3I Group and Microsoft Corp

Assuming the 90 days horizon 3I Group Plc is expected to generate 1.76 times more return on investment than Microsoft Corp. However, 3I Group is 1.76 times more volatile than Microsoft Corp. It trades about 0.02 of its potential returns per unit of risk. Microsoft Corp is currently generating about -0.03 per unit of risk. If you would invest  1,597  in 3I Group Plc on August 30, 2022 and sell it today you would lose (6.00)  from holding 3I Group Plc or give up 0.38% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
ValuesDaily Returns

3I Group Plc  vs.  Microsoft Corp

 Performance (%) 
3I Group Plc 
TGOPF Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in 3I Group Plc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, 3I Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

TGOPF Price Channel

Microsoft Corp 
Microsoft Performance
0 of 100
Over the last 90 days Microsoft Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Microsoft Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Microsoft Price Channel

3I Group and Microsoft Corp Volatility Contrast

   Predicted Return Density   

Pair Trading with 3I Group and Microsoft Corp

The main advantage of trading using opposite 3I Group and Microsoft Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3I Group position performs unexpectedly, Microsoft Corp 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 Corp will offset losses from the drop in Microsoft Corp's long position.
3I Group vs. Blackrock
3I Group vs. Blackstone
3I Group vs. Brookfield Asset Management
3I Group vs. Apollo Asset Management
The idea behind 3I Group Plc and Microsoft Corp 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.
Microsoft Corp vs. Caci International
Microsoft Corp vs. Autodesk
Microsoft Corp vs. Cadence Design Sys
Microsoft Corp vs. Fiserv Inc
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Equity Valuation
Check real value of public entities based on technical and fundamental data
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios