Correlation Between Micron Technology and Lanka Credit
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By analyzing existing cross correlation between Micron Technology and Lanka Credit and, you can compare the effects of market volatilities on Micron Technology and Lanka Credit 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 Lanka Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Lanka Credit.
Diversification Opportunities for Micron Technology and Lanka Credit
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Micron and Lanka is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Lanka Credit and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Credit 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 Lanka Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Credit has no effect on the direction of Micron Technology i.e., Micron Technology and Lanka Credit go up and down completely randomly.
Pair Corralation between Micron Technology and Lanka Credit
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 1.12 times more return on investment than Lanka Credit. However, Micron Technology is 1.12 times more volatile than Lanka Credit and. It trades about 0.05 of its potential returns per unit of risk. Lanka Credit and is currently generating about 0.0 per unit of risk. If you would invest 8,531 in Micron Technology on December 29, 2024 and sell it today you would earn a total of 585.00 from holding Micron Technology or generate 6.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.08% |
Values | Daily Returns |
Micron Technology vs. Lanka Credit and
Performance |
Timeline |
Micron Technology |
Lanka Credit |
Micron Technology and Lanka Credit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and Lanka Credit
The main advantage of trading using opposite Micron Technology and Lanka Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Lanka Credit 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 Lanka Credit will offset losses from the drop in Lanka Credit's long position.Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
Lanka Credit vs. Lanka Milk Foods | Lanka Credit vs. Sanasa Development Bank | Lanka Credit vs. Asiri Surgical Hospital | Lanka Credit vs. PEOPLES LEASING FINANCE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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