Correlation Between FIBRA Storage and Micron Technology
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By analyzing existing cross correlation between FIBRA Storage and Micron Technology, you can compare the effects of market volatilities on FIBRA Storage and Micron Technology 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 FIBRA Storage with a short position of Micron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Micron Technology.
Diversification Opportunities for FIBRA Storage and Micron Technology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIBRA and Micron is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and Micron Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micron Technology and FIBRA Storage 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 FIBRA Storage are associated (or correlated) with Micron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micron Technology has no effect on the direction of FIBRA Storage i.e., FIBRA Storage and Micron Technology go up and down completely randomly.
Pair Corralation between FIBRA Storage and Micron Technology
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 0.3 times more return on investment than Micron Technology. However, FIBRA Storage is 3.37 times less risky than Micron Technology. It trades about 0.12 of its potential returns per unit of risk. Micron Technology is currently generating about -0.01 per unit of risk. If you would invest 1,715 in FIBRA Storage on August 27, 2024 and sell it today you would earn a total of 34.00 from holding FIBRA Storage or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. Micron Technology
Performance |
| Timeline |
| FIBRA Storage |
| Micron Technology |
FIBRA Storage and Micron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Micron Technology
The main advantage of trading using opposite FIBRA Storage and Micron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage position performs unexpectedly, Micron Technology 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 Micron Technology will offset losses from the drop in Micron Technology's long position.| FIBRA Storage vs. Martin Marietta Materials | FIBRA Storage vs. DXC Technology | FIBRA Storage vs. Southwest Airlines | FIBRA Storage vs. Capital One Financial |
| Micron Technology vs. The Bank of | Micron Technology vs. Burlington Stores | Micron Technology vs. Grupo Carso SAB | Micron Technology vs. United States Steel |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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