Correlation Between Micron Technology and Jetwell Computer

Can any of the company-specific risk be diversified away by investing in both Micron Technology and Jetwell Computer 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 Jetwell Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Micron Technology and Jetwell Computer Co, you can compare the effects of market volatilities on Micron Technology and Jetwell Computer 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 Jetwell Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Jetwell Computer.

Diversification Opportunities for Micron Technology and Jetwell Computer

-0.12

Correlation Coefficient

Micron Technology  Jetwell Computer

Good diversification

The 3 months correlation between Micron and Jetwell is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Jetwell Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetwell Computer 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 Jetwell Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetwell Computer has no effect on the direction of Micron Technology i.e., Micron Technology and Jetwell Computer go up and down completely randomly.

Pair Corralation between Micron Technology and Jetwell Computer

Allowing for the 90-day total investment horizon Micron Technology is expected to generate 1.58 times less return on investment than Jetwell Computer. In addition to that, Micron Technology is 1.15 times more volatile than Jetwell Computer Co. It trades about 0.04 of its total potential returns per unit of risk. Jetwell Computer Co is currently generating about 0.08 per unit of volatility. If you would invest  17,000  in Jetwell Computer Co on December 22, 2024 and sell it today you would earn a total of  2,100  from holding Jetwell Computer Co or generate 12.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.8%
Values	Daily Returns

Micron Technology  vs.  Jetwell Computer Co

Micron Technology

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Micron Technology are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Micron Technology may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Jetwell Computer

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jetwell Computer Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Jetwell Computer showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Micron Technology and Jetwell Computer

The main advantage of trading using opposite Micron Technology and Jetwell Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Jetwell Computer 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 Jetwell Computer will offset losses from the drop in Jetwell Computer's long position.

The idea behind Micron Technology and Jetwell Computer Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.