Correlation Between Micron Technology and SEALSQ Corp

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

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

Diversification Opportunities for Micron Technology and SEALSQ Corp

-0.69

Correlation Coefficient

Micron Technology  SEALSQ Corp

Excellent diversification

The 3 months correlation between Micron and SEALSQ is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and SEALSQ Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALSQ 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 SEALSQ Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEALSQ Corp has no effect on the direction of Micron Technology i.e., Micron Technology and SEALSQ Corp go up and down completely randomly.

Pair Corralation between Micron Technology and SEALSQ Corp

Allowing for the 90-day total investment horizon Micron Technology is expected to under-perform the SEALSQ Corp. But the stock apears to be less risky and, when comparing its historical volatility, Micron Technology is 4.33 times less risky than SEALSQ Corp. The stock trades about -0.01 of its potential returns per unit of risk. The SEALSQ Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  123.00  in SEALSQ Corp on October 9, 2024 and sell it today you would earn a total of  592.00  from holding SEALSQ Corp or generate 481.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Micron Technology  vs.  SEALSQ 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 comparatively stable basic indicators, Micron Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

SEALSQ Corp

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SEALSQ Corp are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, SEALSQ Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Micron Technology and SEALSQ Corp

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

The idea behind Micron Technology and SEALSQ 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.