Correlation Between Micron Technology and Kubient

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

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

Diversification Opportunities for Micron Technology and Kubient

0.31

Correlation Coefficient

Micron Technology  Kubient

Weak diversification

The 3 months correlation between Micron and Kubient is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Kubient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kubient 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 Kubient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kubient has no effect on the direction of Micron Technology i.e., Micron Technology and Kubient go up and down completely randomly.

Pair Corralation between Micron Technology and Kubient

If you would invest  2.89  in Kubient on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Kubient or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Micron Technology  vs.  Kubient

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 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.

Kubient

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kubient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kubient is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Micron Technology and Kubient

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

The idea behind Micron Technology and Kubient 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.