Correlation Between Micron Technology and Jiangxi Sunshine
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By analyzing existing cross correlation between Micron Technology and Jiangxi Sunshine Dairy, you can compare the effects of market volatilities on Micron Technology and Jiangxi Sunshine 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 Jiangxi Sunshine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Jiangxi Sunshine.
Diversification Opportunities for Micron Technology and Jiangxi Sunshine
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Micron and Jiangxi is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Jiangxi Sunshine Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Sunshine Dairy 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 Jiangxi Sunshine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Sunshine Dairy has no effect on the direction of Micron Technology i.e., Micron Technology and Jiangxi Sunshine go up and down completely randomly.
Pair Corralation between Micron Technology and Jiangxi Sunshine
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 1.16 times more return on investment than Jiangxi Sunshine. However, Micron Technology is 1.16 times more volatile than Jiangxi Sunshine Dairy. It trades about 0.07 of its potential returns per unit of risk. Jiangxi Sunshine Dairy is currently generating about 0.0 per unit of risk. If you would invest 4,942 in Micron Technology on September 14, 2024 and sell it today you would earn a total of 5,175 from holding Micron Technology or generate 104.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.16% |
| Values | Daily Returns |
Micron Technology vs. Jiangxi Sunshine Dairy
Performance |
| Timeline |
| Micron Technology |
| Jiangxi Sunshine Dairy |
Micron Technology and Jiangxi Sunshine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and Jiangxi Sunshine
The main advantage of trading using opposite Micron Technology and Jiangxi Sunshine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Jiangxi Sunshine 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 Jiangxi Sunshine will offset losses from the drop in Jiangxi Sunshine's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| Jiangxi Sunshine vs. Sinosteel Engineering and | Jiangxi Sunshine vs. Shenwu Energy Saving | Jiangxi Sunshine vs. Ping An Insurance | Jiangxi Sunshine vs. Easyhome New Retail |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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