Correlation Between Micron Technology and NORFOLK
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By analyzing existing cross correlation between Micron Technology and NORFOLK SOUTHN P, you can compare the effects of market volatilities on Micron Technology and NORFOLK 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 NORFOLK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and NORFOLK.
Diversification Opportunities for Micron Technology and NORFOLK
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Micron and NORFOLK is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and NORFOLK SOUTHN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORFOLK SOUTHN P 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 NORFOLK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORFOLK SOUTHN P has no effect on the direction of Micron Technology i.e., Micron Technology and NORFOLK go up and down completely randomly.
Pair Corralation between Micron Technology and NORFOLK
Allowing for the 90-day total investment horizon Micron Technology is expected to under-perform the NORFOLK. In addition to that, Micron Technology is 14.87 times more volatile than NORFOLK SOUTHN P. It trades about -0.13 of its total potential returns per unit of risk. NORFOLK SOUTHN P is currently generating about -0.15 per unit of volatility. If you would invest 9,738 in NORFOLK SOUTHN P on September 24, 2024 and sell it today you would lose (89.00) from holding NORFOLK SOUTHN P or give up 0.91% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
Micron Technology vs. NORFOLK SOUTHN P
Performance |
Timeline |
Micron Technology |
NORFOLK SOUTHN P |
Micron Technology and NORFOLK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and NORFOLK
The main advantage of trading using opposite Micron Technology and NORFOLK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, NORFOLK 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 NORFOLK will offset losses from the drop in NORFOLK's long position.Micron Technology vs. Diodes Incorporated | Micron Technology vs. Daqo New Energy | Micron Technology vs. MagnaChip Semiconductor | Micron Technology vs. Nano Labs |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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