Correlation Between Micron Technology and Lung Hwa
Can any of the company-specific risk be diversified away by investing in both Micron Technology and Lung Hwa 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 Lung Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and Lung Hwa Electronics, you can compare the effects of market volatilities on Micron Technology and Lung Hwa 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 Lung Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Lung Hwa.
Diversification Opportunities for Micron Technology and Lung Hwa
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Micron and Lung is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Lung Hwa Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lung Hwa Electronics 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 Lung Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lung Hwa Electronics has no effect on the direction of Micron Technology i.e., Micron Technology and Lung Hwa go up and down completely randomly.
Pair Corralation between Micron Technology and Lung Hwa
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 2.44 times more return on investment than Lung Hwa. However, Micron Technology is 2.44 times more volatile than Lung Hwa Electronics. It trades about 0.04 of its potential returns per unit of risk. Lung Hwa Electronics is currently generating about 0.0 per unit of risk. If you would invest 8,852 in Micron Technology on December 27, 2024 and sell it today you would earn a total of 361.00 from holding Micron Technology or generate 4.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.67% |
Values | Daily Returns |
Micron Technology vs. Lung Hwa Electronics
Performance |
Timeline |
Micron Technology |
Lung Hwa Electronics |
Micron Technology and Lung Hwa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and Lung Hwa
The main advantage of trading using opposite Micron Technology and Lung Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Lung Hwa 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 Lung Hwa will offset losses from the drop in Lung Hwa's long position.Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
Lung Hwa vs. Chaintech Technology Corp | Lung Hwa vs. AVerMedia Technologies | Lung Hwa vs. Avision | Lung Hwa vs. Clevo Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Transaction History View history of all your transactions and understand their impact on performance | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |