Correlation Between Micron Technology and Far East
Can any of the company-specific risk be diversified away by investing in both Micron Technology and Far East at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Micron Technology and Far East into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and Far East Wind, you can compare the effects of market volatilities on Micron Technology and Far East 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 Far East. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Far East.
Diversification Opportunities for Micron Technology and Far East
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Micron and Far is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Far East Wind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Far East Wind 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 Far East. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Far East Wind has no effect on the direction of Micron Technology i.e., Micron Technology and Far East go up and down completely randomly.
Pair Corralation between Micron Technology and Far East
If you would invest 8,848 in Micron Technology on September 2, 2024 and sell it today you would earn a total of 947.00 from holding Micron Technology or generate 10.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micron Technology vs. Far East Wind
Performance |
| Timeline |
| Micron Technology |
| Far East Wind |
Micron Technology and Far East Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and Far East
The main advantage of trading using opposite Micron Technology and Far East positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Far East 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 Far East will offset losses from the drop in Far East's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| Far East vs. Avis Budget Group | Far East vs. China Aircraft Leasing | Far East vs. ASE Industrial Holding | Far East vs. MACOM Technology Solutions |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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