Correlation Between Micron Technology and Ricky Putra

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

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

Diversification Opportunities for Micron Technology and Ricky Putra

0.26

Correlation Coefficient

Micron Technology  Ricky Putra

Modest diversification

The 3 months correlation between Micron and Ricky is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Ricky Putra Globalindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ricky Putra Globalindo 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 Ricky Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ricky Putra Globalindo has no effect on the direction of Micron Technology i.e., Micron Technology and Ricky Putra go up and down completely randomly.

Pair Corralation between Micron Technology and Ricky Putra

Allowing for the 90-day total investment horizon Micron Technology is expected to generate 0.69 times more return on investment than Ricky Putra. However, Micron Technology is 1.44 times less risky than Ricky Putra. It trades about 0.01 of its potential returns per unit of risk. Ricky Putra Globalindo is currently generating about -0.02 per unit of risk. If you would invest  9,856  in Micron Technology on December 2, 2024 and sell it today you would lose (493.00) from holding Micron Technology or give up 5.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.33%
Values	Daily Returns

Micron Technology  vs.  Ricky Putra Globalindo

Micron Technology

Risk-Adjusted Performance

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.

Ricky Putra Globalindo

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ricky Putra Globalindo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Micron Technology and Ricky Putra

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

The idea behind Micron Technology and Ricky Putra Globalindo 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.