Correlation Between Micron Technology and Plug Power
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By analyzing existing cross correlation between Micron Technology and Plug Power, you can compare the effects of market volatilities on Micron Technology and Plug Power 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 Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Plug Power.
Diversification Opportunities for Micron Technology and Plug Power
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Micron and Plug is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power 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 Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Micron Technology i.e., Micron Technology and Plug Power go up and down completely randomly.
Pair Corralation between Micron Technology and Plug Power
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 3.49 times less return on investment than Plug Power. But when comparing it to its historical volatility, Micron Technology is 1.57 times less risky than Plug Power. It trades about 0.04 of its potential returns per unit of risk. Plug Power is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 234.00 in Plug Power on October 13, 2024 and sell it today you would earn a total of 17.00 from holding Plug Power or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Micron Technology vs. Plug Power
Performance |
| Timeline |
| Micron Technology |
| Plug Power |
Micron Technology and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and Plug Power
The main advantage of trading using opposite Micron Technology and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Plug Power 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 Plug Power will offset losses from the drop in Plug Power's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| Plug Power vs. Singapore Airlines Limited | Plug Power vs. Keck Seng Investments | Plug Power vs. AGNC INVESTMENT | Plug Power vs. Gol Intelligent Airlines |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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