Correlation Between Micron Technology and VERIZON
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By analyzing existing cross correlation between Micron Technology and VERIZON MUNICATIONS INC, you can compare the effects of market volatilities on Micron Technology and VERIZON 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 VERIZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and VERIZON.
Diversification Opportunities for Micron Technology and VERIZON
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Micron and VERIZON is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and VERIZON MUNICATIONS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERIZON MUNICATIONS INC 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 VERIZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERIZON MUNICATIONS INC has no effect on the direction of Micron Technology i.e., Micron Technology and VERIZON go up and down completely randomly.
Pair Corralation between Micron Technology and VERIZON
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 3.34 times more return on investment than VERIZON. However, Micron Technology is 3.34 times more volatile than VERIZON MUNICATIONS INC. It trades about 0.04 of its potential returns per unit of risk. VERIZON MUNICATIONS INC is currently generating about 0.01 per unit of risk. If you would invest 8,182 in Micron Technology on September 14, 2024 and sell it today you would earn a total of 1,935 from holding Micron Technology or generate 23.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.76% |
| Values | Daily Returns |
Micron Technology vs. VERIZON MUNICATIONS INC
Performance |
| Timeline |
| Micron Technology |
| VERIZON MUNICATIONS INC |
Micron Technology and VERIZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and VERIZON
The main advantage of trading using opposite Micron Technology and VERIZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, VERIZON 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 VERIZON will offset losses from the drop in VERIZON's long position.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| VERIZON vs. AEP TEX INC | VERIZON vs. US BANK NATIONAL | VERIZON vs. Alphabet Inc Class C | VERIZON vs. InMode |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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