Correlation Between Micron Technology, and High Liner
Can any of the company-specific risk be diversified away by investing in both Micron Technology, and High Liner 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 High Liner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology, and High Liner Foods, you can compare the effects of market volatilities on Micron Technology, and High Liner 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 High Liner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology, and High Liner.
Diversification Opportunities for Micron Technology, and High Liner
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Micron and High is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology, and High Liner Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Liner Foods 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 High Liner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Liner Foods has no effect on the direction of Micron Technology, i.e., Micron Technology, and High Liner go up and down completely randomly.
Pair Corralation between Micron Technology, and High Liner
Assuming the 90 days trading horizon Micron Technology, is expected to generate 2.27 times more return on investment than High Liner. However, Micron Technology, is 2.27 times more volatile than High Liner Foods. It trades about 0.3 of its potential returns per unit of risk. High Liner Foods is currently generating about -0.1 per unit of risk. If you would invest 2,042 in Micron Technology, on October 23, 2024 and sell it today you would earn a total of 400.00 from holding Micron Technology, or generate 19.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micron Technology, vs. High Liner Foods
Performance |
| Timeline |
| Micron Technology, |
| High Liner Foods |
Micron Technology, and High Liner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology, and High Liner
The main advantage of trading using opposite Micron Technology, and High Liner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology, position performs unexpectedly, High Liner 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 High Liner will offset losses from the drop in High Liner's long position.| Micron Technology, vs. Jamieson Wellness | Micron Technology, vs. WELL Health Technologies | Micron Technology, vs. Canadian Utilities Limited | Micron Technology, vs. Bausch Health Companies |
| High Liner vs. Leons Furniture Limited | High Liner vs. Autocanada | High Liner vs. Maple Leaf Foods | High Liner vs. Premium Brands Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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