Correlation Between Micron Technology and Shengtak New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Micron Technology and Shengtak New Material, you can compare the effects of market volatilities on Micron Technology and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Shengtak New.
Diversification Opportunities for Micron Technology and Shengtak New
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Micron and Shengtak is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Micron Technology i.e., Micron Technology and Shengtak New go up and down completely randomly.
Pair Corralation between Micron Technology and Shengtak New
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 2.58 times more return on investment than Shengtak New. However, Micron Technology is 2.58 times more volatile than Shengtak New Material. It trades about -0.02 of its potential returns per unit of risk. Shengtak New Material is currently generating about -0.05 per unit of risk. If you would invest 10,812 in Micron Technology on October 17, 2024 and sell it today you would lose (493.00) from holding Micron Technology or give up 4.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Micron Technology vs. Shengtak New Material
Performance |
| Timeline |
| Micron Technology |
| Shengtak New Material |
Micron Technology and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and Shengtak New
The main advantage of trading using opposite Micron Technology and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| Shengtak New vs. Wonders Information | Shengtak New vs. Shenzhen SDG Information | Shengtak New vs. Thinkon Semiconductor Jinzhou | Shengtak New vs. Sharetronic Data Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |