Correlation Between Micron Technology and Swiftmerge Acquisition

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

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

Diversification Opportunities for Micron Technology and Swiftmerge Acquisition

0.42

Correlation Coefficient

Micron Technology  Swiftmerge Acquisition

Very weak diversification

The 3 months correlation between Micron and Swiftmerge is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Swiftmerge Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiftmerge Acquisition 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 Swiftmerge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiftmerge Acquisition has no effect on the direction of Micron Technology i.e., Micron Technology and Swiftmerge Acquisition go up and down completely randomly.

Pair Corralation between Micron Technology and Swiftmerge Acquisition

Allowing for the 90-day total investment horizon Micron Technology is expected to under-perform the Swiftmerge Acquisition. In addition to that, Micron Technology is 1.45 times more volatile than Swiftmerge Acquisition Corp. It trades about -0.08 of its total potential returns per unit of risk. Swiftmerge Acquisition Corp is currently generating about -0.03 per unit of volatility. If you would invest  1,111  in Swiftmerge Acquisition Corp on September 26, 2024 and sell it today you would lose (61.00) from holding Swiftmerge Acquisition Corp or give up 5.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	90.48%
Values	Daily Returns

Micron Technology  vs.  Swiftmerge Acquisition Corp

Micron Technology

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Swiftmerge Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Swiftmerge Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Swiftmerge Acquisition is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Micron Technology and Swiftmerge Acquisition

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

The idea behind Micron Technology and Swiftmerge Acquisition 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.