Correlation Between Micron Technology and Beijing Shunxin
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By analyzing existing cross correlation between Micron Technology and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on Micron Technology and Beijing Shunxin 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 Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Beijing Shunxin.
Diversification Opportunities for Micron Technology and Beijing Shunxin
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Micron and Beijing is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri 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 Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of Micron Technology i.e., Micron Technology and Beijing Shunxin go up and down completely randomly.
Pair Corralation between Micron Technology and Beijing Shunxin
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 2.59 times more return on investment than Beijing Shunxin. However, Micron Technology is 2.59 times more volatile than Beijing Shunxin Agriculture. It trades about 0.03 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about 0.09 per unit of risk. If you would invest 8,992 in Micron Technology on December 5, 2024 and sell it today you would earn a total of 123.00 from holding Micron Technology or generate 1.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 90.91% |
Values | Daily Returns |
Micron Technology vs. Beijing Shunxin Agriculture
Performance |
Timeline |
Micron Technology |
Beijing Shunxin Agri |
Micron Technology and Beijing Shunxin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and Beijing Shunxin
The main advantage of trading using opposite Micron Technology and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
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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 Valuation module to check real value of public entities based on technical and fundamental data.
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