Correlation Between Micron Technology and IGEN Networks

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

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

Diversification Opportunities for Micron Technology and IGEN Networks

0.0

Correlation Coefficient

Micron Technology  IGEN Networks

Pay attention - limited upside

The 3 months correlation between Micron and IGEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and IGEN Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGEN Networks Corp 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 IGEN Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGEN Networks Corp has no effect on the direction of Micron Technology i.e., Micron Technology and IGEN Networks go up and down completely randomly.

Pair Corralation between Micron Technology and IGEN Networks

If you would invest  0.01  in IGEN Networks Corp on December 4, 2024 and sell it today you would earn a total of  0.00  from holding IGEN Networks Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Micron Technology  vs.  IGEN Networks Corp

Micron Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Micron Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

IGEN Networks Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days IGEN Networks Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, IGEN Networks is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Micron Technology and IGEN Networks

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

The idea behind Micron Technology and IGEN Networks Corp 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.