Correlation Between Micron Technology and SuRo Capital
Can any of the company-specific risk be diversified away by investing in both Micron Technology and SuRo Capital 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 SuRo Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and SuRo Capital Corp, you can compare the effects of market volatilities on Micron Technology and SuRo Capital 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 SuRo Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and SuRo Capital.
Diversification Opportunities for Micron Technology and SuRo Capital
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Micron and SuRo is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and SuRo Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuRo Capital Corp 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 SuRo Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuRo Capital Corp has no effect on the direction of Micron Technology i.e., Micron Technology and SuRo Capital go up and down completely randomly.
Pair Corralation between Micron Technology and SuRo Capital
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 0.78 times more return on investment than SuRo Capital. However, Micron Technology is 1.28 times less risky than SuRo Capital. It trades about 0.04 of its potential returns per unit of risk. SuRo Capital Corp is currently generating about 0.01 per unit of risk. If you would invest 8,970 in Micron Technology on December 26, 2024 and sell it today you would earn a total of 448.00 from holding Micron Technology or generate 4.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Micron Technology vs. SuRo Capital Corp
Performance |
Timeline |
Micron Technology |
SuRo Capital Corp |
Micron Technology and SuRo Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and SuRo Capital
The main advantage of trading using opposite Micron Technology and SuRo Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, SuRo Capital 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 SuRo Capital will offset losses from the drop in SuRo Capital's long position.Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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