Correlation Between Micron Technology and SCOR SE
Can any of the company-specific risk be diversified away by investing in both Micron Technology and SCOR SE 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 SCOR SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and SCOR SE, you can compare the effects of market volatilities on Micron Technology and SCOR SE 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 SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and SCOR SE.
Diversification Opportunities for Micron Technology and SCOR SE
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Micron and SCOR is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE 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 SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of Micron Technology i.e., Micron Technology and SCOR SE go up and down completely randomly.
Pair Corralation between Micron Technology and SCOR SE
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 1.21 times more return on investment than SCOR SE. However, Micron Technology is 1.21 times more volatile than SCOR SE. It trades about 0.05 of its potential returns per unit of risk. SCOR SE is currently generating about 0.03 per unit of risk. If you would invest 6,113 in Micron Technology on October 12, 2024 and sell it today you would earn a total of 3,828 from holding Micron Technology or generate 62.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Micron Technology vs. SCOR SE
Performance |
| Timeline |
| Micron Technology |
| SCOR SE |
Micron Technology and SCOR SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and SCOR SE
The main advantage of trading using opposite Micron Technology and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| SCOR SE vs. WIMFARM SA EO | SCOR SE vs. Firan Technology Group | SCOR SE vs. Casio Computer CoLtd | SCOR SE vs. AGRICULTBK HADR25 YC |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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