Correlation Between Micron Technology and Saba Capital
Can any of the company-specific risk be diversified away by investing in both Micron Technology and Saba Capital 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 Saba Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and Saba Capital Income, you can compare the effects of market volatilities on Micron Technology and Saba Capital 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 Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Saba Capital.
Diversification Opportunities for Micron Technology and Saba Capital
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Micron and Saba is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Saba Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Capital Income 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 Saba Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Capital Income has no effect on the direction of Micron Technology i.e., Micron Technology and Saba Capital go up and down completely randomly.
Pair Corralation between Micron Technology and Saba Capital
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 5.81 times more return on investment than Saba Capital. However, Micron Technology is 5.81 times more volatile than Saba Capital Income. It trades about 0.09 of its potential returns per unit of risk. Saba Capital Income is currently generating about 0.29 per unit of risk. If you would invest 8,711 in Micron Technology on September 12, 2024 and sell it today you would earn a total of 1,495 from holding Micron Technology or generate 17.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micron Technology vs. Saba Capital Income
Performance |
| Timeline |
| Micron Technology |
| Saba Capital Income |
Micron Technology and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and Saba Capital
The main advantage of trading using opposite Micron Technology and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Saba Capital 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 Saba Capital will offset losses from the drop in Saba Capital's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| Saba Capital vs. FT Vest Equity | Saba Capital vs. Zillow Group Class | Saba Capital vs. Northern Lights | Saba Capital vs. VanEck Vectors Moodys |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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