Correlation Between Micron Technology and Deutsche Multi-asset
Can any of the company-specific risk be diversified away by investing in both Micron Technology and Deutsche Multi-asset 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 Deutsche Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and Deutsche Multi Asset Servative, you can compare the effects of market volatilities on Micron Technology and Deutsche Multi-asset 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 Deutsche Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Deutsche Multi-asset.
Diversification Opportunities for Micron Technology and Deutsche Multi-asset
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Micron and Deutsche is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Deutsche Multi Asset Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Multi Asset 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 Deutsche Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Multi Asset has no effect on the direction of Micron Technology i.e., Micron Technology and Deutsche Multi-asset go up and down completely randomly.
Pair Corralation between Micron Technology and Deutsche Multi-asset
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 6.63 times more return on investment than Deutsche Multi-asset. However, Micron Technology is 6.63 times more volatile than Deutsche Multi Asset Servative. It trades about 0.05 of its potential returns per unit of risk. Deutsche Multi Asset Servative is currently generating about 0.06 per unit of risk. If you would invest 5,353 in Micron Technology on December 4, 2024 and sell it today you would earn a total of 3,701 from holding Micron Technology or generate 69.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Micron Technology vs. Deutsche Multi Asset Servative
Performance |
Timeline |
Micron Technology |
Deutsche Multi Asset |
Micron Technology and Deutsche Multi-asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and Deutsche Multi-asset
The main advantage of trading using opposite Micron Technology and Deutsche Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Deutsche Multi-asset 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 Deutsche Multi-asset will offset losses from the drop in Deutsche Multi-asset's long position.Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
Deutsche Multi-asset vs. T Rowe Price | Deutsche Multi-asset vs. Lord Abbett Affiliated | Deutsche Multi-asset vs. Avantis Large Cap | Deutsche Multi-asset vs. Tax Managed Large Cap |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |