Correlation Between Micron Technology and CSG Holding
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By analyzing existing cross correlation between Micron Technology and CSG Holding Co, you can compare the effects of market volatilities on Micron Technology and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and CSG Holding.
Diversification Opportunities for Micron Technology and CSG Holding
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Micron and CSG is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Micron Technology i.e., Micron Technology and CSG Holding go up and down completely randomly.
Pair Corralation between Micron Technology and CSG Holding
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 2.25 times more return on investment than CSG Holding. However, Micron Technology is 2.25 times more volatile than CSG Holding Co. It trades about 0.05 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.02 per unit of risk. If you would invest 5,353 in Micron Technology on December 4, 2024 and sell it today you would earn a total of 3,473 from holding Micron Technology or generate 64.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.36% |
| Values | Daily Returns |
Micron Technology vs. CSG Holding Co
Performance |
| Timeline |
| Micron Technology |
| CSG Holding |
Micron Technology and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and CSG Holding
The main advantage of trading using opposite Micron Technology and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| CSG Holding vs. Jilin Chemical Fibre | CSG Holding vs. Servyou Software Group | CSG Holding vs. Miracll Chemicals Co | CSG Holding vs. Jinsanjiang Silicon Material |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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