Correlation Between Micron Technology and Mapletree Industrial
Can any of the company-specific risk be diversified away by investing in both Micron Technology and Mapletree Industrial 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 Mapletree Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and Mapletree Industrial Trust, you can compare the effects of market volatilities on Micron Technology and Mapletree Industrial 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 Mapletree Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Mapletree Industrial.
Diversification Opportunities for Micron Technology and Mapletree Industrial
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Micron and Mapletree is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Mapletree Industrial Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Industrial 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 Mapletree Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Industrial has no effect on the direction of Micron Technology i.e., Micron Technology and Mapletree Industrial go up and down completely randomly.
Pair Corralation between Micron Technology and Mapletree Industrial
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 2.71 times more return on investment than Mapletree Industrial. However, Micron Technology is 2.71 times more volatile than Mapletree Industrial Trust. It trades about 0.1 of its potential returns per unit of risk. Mapletree Industrial Trust is currently generating about -0.13 per unit of risk. If you would invest 8,708 in Micron Technology on September 14, 2024 and sell it today you would earn a total of 1,545 from holding Micron Technology or generate 17.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
Micron Technology vs. Mapletree Industrial Trust
Performance |
Timeline |
Micron Technology |
Mapletree Industrial |
Micron Technology and Mapletree Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and Mapletree Industrial
The main advantage of trading using opposite Micron Technology and Mapletree Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Mapletree Industrial 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 Mapletree Industrial will offset losses from the drop in Mapletree Industrial's long position.Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
Mapletree Industrial vs. Public Storage | Mapletree Industrial vs. Prologis | Mapletree Industrial vs. Yara International ASA | Mapletree Industrial vs. Ascendas Real Estate |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |