Correlation Between Micron Technology and Apple
Can any of the company-specific risk be diversified away by investing in both Micron Technology and Apple 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 Micron Technology and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and Apple Inc, you can compare the effects of market volatilities on Micron Technology and Apple 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 Micron Technology with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Apple.
Diversification Opportunities for Micron Technology and Apple
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Micron and Apple is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Micron Technology 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 Micron Technology are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Micron Technology i.e., Micron Technology and Apple go up and down completely randomly.
Pair Corralation between Micron Technology and Apple
Assuming the 90 days trading horizon Micron Technology is expected to under-perform the Apple. In addition to that, Micron Technology is 3.24 times more volatile than Apple Inc. It trades about -0.06 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.59 per unit of volatility. If you would invest 20,985 in Apple Inc on September 12, 2024 and sell it today you would earn a total of 2,515 from holding Apple Inc or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micron Technology vs. Apple Inc
Performance |
| Timeline |
| Micron Technology |
| Apple Inc |
Micron Technology and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and Apple
The main advantage of trading using opposite Micron Technology and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Micron Technology vs. Sumitomo Rubber Industries | Micron Technology vs. Sixt Leasing SE | Micron Technology vs. GOODYEAR T RUBBER | Micron Technology vs. United Utilities Group |
| Apple vs. Aedas Homes SA | Apple vs. INFORMATION SVC GRP | Apple vs. Neinor Homes SA | Apple vs. Public Storage |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |