Correlation Between Micron Technology and Aerospace
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By analyzing existing cross correlation between Micron Technology and Aerospace Hi Tech Holding, you can compare the effects of market volatilities on Micron Technology and Aerospace 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 Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Aerospace.
Diversification Opportunities for Micron Technology and Aerospace
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Micron and Aerospace is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Aerospace Hi Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerospace Hi Tech 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 Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerospace Hi Tech has no effect on the direction of Micron Technology i.e., Micron Technology and Aerospace go up and down completely randomly.
Pair Corralation between Micron Technology and Aerospace
Allowing for the 90-day total investment horizon Micron Technology is expected to under-perform the Aerospace. In addition to that, Micron Technology is 2.39 times more volatile than Aerospace Hi Tech Holding. It trades about -0.13 of its total potential returns per unit of risk. Aerospace Hi Tech Holding is currently generating about -0.04 per unit of volatility. If you would invest 1,166 in Aerospace Hi Tech Holding on September 24, 2024 and sell it today you would lose (25.00) from holding Aerospace Hi Tech Holding or give up 2.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Micron Technology vs. Aerospace Hi Tech Holding
Performance |
Timeline |
Micron Technology |
Aerospace Hi Tech |
Micron Technology and Aerospace Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and Aerospace
The main advantage of trading using opposite Micron Technology and Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Aerospace 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 Aerospace will offset losses from the drop in Aerospace's long position.Micron Technology vs. Diodes Incorporated | Micron Technology vs. Daqo New Energy | Micron Technology vs. Nano Labs | Micron Technology vs. Impinj Inc |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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