Correlation Between Core Scientific, and Microsoft

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

By analyzing existing cross correlation between Core Scientific, Common and Microsoft, you can compare the effects of market volatilities on Core Scientific, 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 Core Scientific, with a short position of Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Scientific, and Microsoft.

Diversification Opportunities for Core Scientific, and Microsoft

0.51

Correlation Coefficient

Core Scientific,  Microsoft

Very weak diversification

The 3 months correlation between Core and Microsoft is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Core Scientific, Common and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft and Core Scientific, 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 Core Scientific, Common 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 Core Scientific, i.e., Core Scientific, and Microsoft go up and down completely randomly.

Pair Corralation between Core Scientific, and Microsoft

Given the investment horizon of 90 days Core Scientific, Common is expected to generate 3.09 times more return on investment than Microsoft. However, Core Scientific, is 3.09 times more volatile than Microsoft. It trades about -0.01 of its potential returns per unit of risk. Microsoft is currently generating about -0.08 per unit of risk. If you would invest  1,618  in Core Scientific, Common on September 16, 2025 and sell it today you would lose (90.00) from holding Core Scientific, Common or give up 5.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Core Scientific, Common  vs.  Microsoft

Core Scientific, Common

Risk-Adjusted Performance

Weak

Over the last 90 days Core Scientific, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Core Scientific, is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Core Scientific, and Microsoft

The main advantage of trading using opposite Core Scientific, and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Scientific, 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 Core Scientific, Common 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.