Correlation Between Micron Technology and GENFIT
Can any of the company-specific risk be diversified away by investing in both Micron Technology and GENFIT 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 GENFIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and GENFIT, you can compare the effects of market volatilities on Micron Technology and GENFIT 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 GENFIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and GENFIT.
Diversification Opportunities for Micron Technology and GENFIT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Micron and GENFIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and GENFIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENFIT 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 GENFIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENFIT has no effect on the direction of Micron Technology i.e., Micron Technology and GENFIT go up and down completely randomly.
Pair Corralation between Micron Technology and GENFIT
If you would invest (100.00) in GENFIT on September 24, 2024 and sell it today you would earn a total of 100.00 from holding GENFIT or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Micron Technology vs. GENFIT
Performance |
| Timeline |
| Micron Technology |
| GENFIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Micron Technology and GENFIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and GENFIT
The main advantage of trading using opposite Micron Technology and GENFIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, GENFIT 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 GENFIT will offset losses from the drop in GENFIT's long position.| Micron Technology vs. Diodes Incorporated | Micron Technology vs. Daqo New Energy | Micron Technology vs. Nano Labs | Micron Technology vs. Impinj Inc |
| GENFIT vs. DIVERSIFIED ROYALTY | GENFIT vs. Soken Chemical Engineering | GENFIT vs. X FAB Silicon Foundries | GENFIT vs. Sanyo Chemical Industries |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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