Correlation Between Micron Technology and Great Elm
Can any of the company-specific risk be diversified away by investing in both Micron Technology and Great Elm 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 Great Elm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and Great Elm Capital, you can compare the effects of market volatilities on Micron Technology and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Great Elm.
Diversification Opportunities for Micron Technology and Great Elm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Micron and Great is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of Micron Technology i.e., Micron Technology and Great Elm go up and down completely randomly.
Pair Corralation between Micron Technology and Great Elm
If you would invest 5,353 in Micron Technology on December 4, 2024 and sell it today you would earn a total of 3,473 from holding Micron Technology or generate 64.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Micron Technology vs. Great Elm Capital
Performance |
Timeline |
Micron Technology |
Great Elm Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Micron Technology and Great Elm Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and Great Elm
The main advantage of trading using opposite Micron Technology and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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