Correlation Between Micron Technology and WuXi Xinje
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By analyzing existing cross correlation between Micron Technology and WuXi Xinje Electric, you can compare the effects of market volatilities on Micron Technology and WuXi Xinje 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 WuXi Xinje. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and WuXi Xinje.
Diversification Opportunities for Micron Technology and WuXi Xinje
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Micron and WuXi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and WuXi Xinje Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi Xinje 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 WuXi Xinje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi Xinje Electric has no effect on the direction of Micron Technology i.e., Micron Technology and WuXi Xinje go up and down completely randomly.
Pair Corralation between Micron Technology and WuXi Xinje
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 1.08 times more return on investment than WuXi Xinje. However, Micron Technology is 1.08 times more volatile than WuXi Xinje Electric. It trades about 0.05 of its potential returns per unit of risk. WuXi Xinje Electric is currently generating about 0.0 per unit of risk. If you would invest 6,058 in Micron Technology on October 15, 2024 and sell it today you would earn a total of 3,876 from holding Micron Technology or generate 63.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.57% |
| Values | Daily Returns |
Micron Technology vs. WuXi Xinje Electric
Performance |
| Timeline |
| Micron Technology |
| WuXi Xinje Electric |
Micron Technology and WuXi Xinje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and WuXi Xinje
The main advantage of trading using opposite Micron Technology and WuXi Xinje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, WuXi Xinje 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 WuXi Xinje will offset losses from the drop in WuXi Xinje's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| WuXi Xinje vs. Hunan Mendale Hometextile | WuXi Xinje vs. Jinlong Machinery Electronic | WuXi Xinje vs. Qumei Furniture Group | WuXi Xinje vs. Aurora Optoelectronics Co |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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