Correlation Between Micron Technology and Expat Macedonia

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

By analyzing existing cross correlation between Micron Technology and Expat Macedonia Mbi10, you can compare the effects of market volatilities on Micron Technology and Expat Macedonia 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 Expat Macedonia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Expat Macedonia.

Diversification Opportunities for Micron Technology and Expat Macedonia

-0.58

Correlation Coefficient

Micron Technology  Expat Macedonia

Excellent diversification

The 3 months correlation between Micron and Expat is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Expat Macedonia Mbi10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Macedonia Mbi10 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 Expat Macedonia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Macedonia Mbi10 has no effect on the direction of Micron Technology i.e., Micron Technology and Expat Macedonia go up and down completely randomly.

Pair Corralation between Micron Technology and Expat Macedonia

Allowing for the 90-day total investment horizon Micron Technology is expected to generate 4.42 times more return on investment than Expat Macedonia. However, Micron Technology is 4.42 times more volatile than Expat Macedonia Mbi10. It trades about 0.3 of its potential returns per unit of risk. Expat Macedonia Mbi10 is currently generating about 0.44 per unit of risk. If you would invest  8,698  in Micron Technology on October 20, 2024 and sell it today you would earn a total of  1,877  from holding Micron Technology or generate 21.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	85.0%
Values	Daily Returns

Micron Technology  vs.  Expat Macedonia Mbi10

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.

Expat Macedonia Mbi10

Risk-Adjusted Performance

37 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Expat Macedonia Mbi10 are ranked lower than 37 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Expat Macedonia exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Micron Technology and Expat Macedonia

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

The idea behind Micron Technology and Expat Macedonia Mbi10 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.