Correlation Between Micron Technology and INTERSHOP Communications
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By analyzing existing cross correlation between Micron Technology and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Micron Technology and INTERSHOP Communications 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 INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and INTERSHOP Communications.
Diversification Opportunities for Micron Technology and INTERSHOP Communications
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Micron and INTERSHOP is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications 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 INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of Micron Technology i.e., Micron Technology and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Micron Technology and INTERSHOP Communications
Assuming the 90 days trading horizon Micron Technology is expected to generate 1.04 times more return on investment than INTERSHOP Communications. However, Micron Technology is 1.04 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.05 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.02 per unit of risk. If you would invest 5,632 in Micron Technology on October 27, 2024 and sell it today you would earn a total of 4,189 from holding Micron Technology or generate 74.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micron Technology vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Micron Technology |
| INTERSHOP Communications |
Micron Technology and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and INTERSHOP Communications
The main advantage of trading using opposite Micron Technology and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.| Micron Technology vs. Apple Inc | Micron Technology vs. Apple Inc | Micron Technology vs. Apple Inc | Micron Technology vs. Apple Inc |
| INTERSHOP Communications vs. Uber Technologies | INTERSHOP Communications vs. PagerDuty | INTERSHOP Communications vs. Rocket Internet SE | INTERSHOP Communications vs. Fastly 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 the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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