Correlation Between Micron Technology and Shenzhen INVT
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By analyzing existing cross correlation between Micron Technology and Shenzhen INVT Electric, you can compare the effects of market volatilities on Micron Technology and Shenzhen INVT 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 Shenzhen INVT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Shenzhen INVT.
Diversification Opportunities for Micron Technology and Shenzhen INVT
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Micron and Shenzhen is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Shenzhen INVT Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen INVT Electric 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 Shenzhen INVT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen INVT Electric has no effect on the direction of Micron Technology i.e., Micron Technology and Shenzhen INVT go up and down completely randomly.
Pair Corralation between Micron Technology and Shenzhen INVT
Allowing for the 90-day total investment horizon Micron Technology is expected to under-perform the Shenzhen INVT. In addition to that, Micron Technology is 1.15 times more volatile than Shenzhen INVT Electric. It trades about -0.09 of its total potential returns per unit of risk. Shenzhen INVT Electric is currently generating about 0.18 per unit of volatility. If you would invest 725.00 in Shenzhen INVT Electric on September 13, 2024 and sell it today you would earn a total of 65.00 from holding Shenzhen INVT Electric or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Micron Technology vs. Shenzhen INVT Electric
Performance |
| Timeline |
| Micron Technology |
| Shenzhen INVT Electric |
Micron Technology and Shenzhen INVT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and Shenzhen INVT
The main advantage of trading using opposite Micron Technology and Shenzhen INVT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Shenzhen INVT 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 Shenzhen INVT will offset losses from the drop in Shenzhen INVT's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| Shenzhen INVT vs. Industrial and Commercial | Shenzhen INVT vs. Agricultural Bank of | Shenzhen INVT vs. China Construction Bank | Shenzhen INVT vs. Bank of China |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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