Correlation Between Micron Technology and INA Industrija
Can any of the company-specific risk be diversified away by investing in both Micron Technology and INA Industrija 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 INA Industrija into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and INA Industrija Nafte dd, you can compare the effects of market volatilities on Micron Technology and INA Industrija 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 INA Industrija. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and INA Industrija.
Diversification Opportunities for Micron Technology and INA Industrija
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Micron and INA is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and INA Industrija Nafte dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INA Industrija Nafte 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 INA Industrija. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INA Industrija Nafte has no effect on the direction of Micron Technology i.e., Micron Technology and INA Industrija go up and down completely randomly.
Pair Corralation between Micron Technology and INA Industrija
Allowing for the 90-day total investment horizon Micron Technology is expected to under-perform the INA Industrija. In addition to that, Micron Technology is 2.16 times more volatile than INA Industrija Nafte dd. It trades about -0.03 of its total potential returns per unit of risk. INA Industrija Nafte dd is currently generating about 0.05 per unit of volatility. If you would invest 46,600 in INA Industrija Nafte dd on December 4, 2024 and sell it today you would earn a total of 1,000.00 from holding INA Industrija Nafte dd or generate 2.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 44.07% |
Values | Daily Returns |
Micron Technology vs. INA Industrija Nafte dd
Performance |
Timeline |
Micron Technology |
INA Industrija Nafte |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
Micron Technology and INA Industrija Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and INA Industrija
The main advantage of trading using opposite Micron Technology and INA Industrija positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, INA Industrija 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 INA Industrija will offset losses from the drop in INA Industrija's long position.Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
INA Industrija vs. Dalekovod dd | INA Industrija vs. Institut IGH dd | INA Industrija vs. KRA dd | INA Industrija vs. Zagrebacka Banka dd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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