Correlation Between Micron Technology and STANLN
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By analyzing existing cross correlation between Micron Technology and STANLN 7767 16 NOV 28, you can compare the effects of market volatilities on Micron Technology and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and STANLN.
Diversification Opportunities for Micron Technology and STANLN
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Micron and STANLN is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and STANLN 7767 16 NOV 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 7767 16 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 7767 16 has no effect on the direction of Micron Technology i.e., Micron Technology and STANLN go up and down completely randomly.
Pair Corralation between Micron Technology and STANLN
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 7.9 times more return on investment than STANLN. However, Micron Technology is 7.9 times more volatile than STANLN 7767 16 NOV 28. It trades about 0.05 of its potential returns per unit of risk. STANLN 7767 16 NOV 28 is currently generating about -0.01 per unit of risk. If you would invest 7,828 in Micron Technology on September 14, 2024 and sell it today you would earn a total of 2,422 from holding Micron Technology or generate 30.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 53.53% |
| Values | Daily Returns |
Micron Technology vs. STANLN 7767 16 NOV 28
Performance |
| Timeline |
| Micron Technology |
| STANLN 7767 16 |
Micron Technology and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and STANLN
The main advantage of trading using opposite Micron Technology and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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