Correlation Between Micron Technology, and Canso Credit
Can any of the company-specific risk be diversified away by investing in both Micron Technology, and Canso Credit 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 Canso Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology, and Canso Credit Trust, you can compare the effects of market volatilities on Micron Technology, and Canso Credit 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 Canso Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology, and Canso Credit.
Diversification Opportunities for Micron Technology, and Canso Credit
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Micron and Canso is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology, and Canso Credit Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canso Credit Trust 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 Canso Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canso Credit Trust has no effect on the direction of Micron Technology, i.e., Micron Technology, and Canso Credit go up and down completely randomly.
Pair Corralation between Micron Technology, and Canso Credit
Assuming the 90 days trading horizon Micron Technology, is expected to generate 14.53 times more return on investment than Canso Credit. However, Micron Technology, is 14.53 times more volatile than Canso Credit Trust. It trades about 0.06 of its potential returns per unit of risk. Canso Credit Trust is currently generating about -0.01 per unit of risk. If you would invest 2,007 in Micron Technology, on November 3, 2024 and sell it today you would earn a total of 87.00 from holding Micron Technology, or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micron Technology, vs. Canso Credit Trust
Performance |
| Timeline |
| Micron Technology, |
| Canso Credit Trust |
Micron Technology, and Canso Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology, and Canso Credit
The main advantage of trading using opposite Micron Technology, and Canso Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology, position performs unexpectedly, Canso Credit 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 Canso Credit will offset losses from the drop in Canso Credit's long position.| Micron Technology, vs. 2028 Investment Grade | Micron Technology, vs. Brookfield Investments | Micron Technology, vs. Westshore Terminals Investment | Micron Technology, vs. Atrium Mortgage Investment |
| Canso Credit vs. MINT Income Fund | Canso Credit vs. Canadian High Income | Canso Credit vs. Blue Ribbon Income | Canso Credit vs. Australian REIT Income |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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