Correlation Between Micron Technology and Namchow Food
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By analyzing existing cross correlation between Micron Technology and Namchow Food Group, you can compare the effects of market volatilities on Micron Technology and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Namchow Food.
Diversification Opportunities for Micron Technology and Namchow Food
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Micron and Namchow is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Micron Technology i.e., Micron Technology and Namchow Food go up and down completely randomly.
Pair Corralation between Micron Technology and Namchow Food
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 1.89 times more return on investment than Namchow Food. However, Micron Technology is 1.89 times more volatile than Namchow Food Group. It trades about 0.05 of its potential returns per unit of risk. Namchow Food Group is currently generating about -0.02 per unit of risk. If you would invest 8,531 in Micron Technology on December 29, 2024 and sell it today you would earn a total of 585.00 from holding Micron Technology or generate 6.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.08% |
Values | Daily Returns |
Micron Technology vs. Namchow Food Group
Performance |
Timeline |
Micron Technology |
Namchow Food Group |
Micron Technology and Namchow Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and Namchow Food
The main advantage of trading using opposite Micron Technology and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food'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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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