Correlation Between Micron Technology and China Baoan
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By analyzing existing cross correlation between Micron Technology and China Baoan Group, you can compare the effects of market volatilities on Micron Technology and China Baoan 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 China Baoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and China Baoan.
Diversification Opportunities for Micron Technology and China Baoan
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Micron and China is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and China Baoan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Baoan Group 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 China Baoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Baoan Group has no effect on the direction of Micron Technology i.e., Micron Technology and China Baoan go up and down completely randomly.
Pair Corralation between Micron Technology and China Baoan
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 1.35 times more return on investment than China Baoan. However, Micron Technology is 1.35 times more volatile than China Baoan Group. It trades about 0.06 of its potential returns per unit of risk. China Baoan Group is currently generating about -0.01 per unit of risk. If you would invest 4,988 in Micron Technology on September 24, 2024 and sell it today you would earn a total of 4,024 from holding Micron Technology or generate 80.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 96.18% |
Values | Daily Returns |
Micron Technology vs. China Baoan Group
Performance |
Timeline |
Micron Technology |
China Baoan Group |
Micron Technology and China Baoan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and China Baoan
The main advantage of trading using opposite Micron Technology and China Baoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, China Baoan 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 China Baoan will offset losses from the drop in China Baoan's long position.Micron Technology vs. Diodes Incorporated | Micron Technology vs. Daqo New Energy | Micron Technology vs. MagnaChip Semiconductor | Micron Technology vs. Nano Labs |
China Baoan vs. Ming Yang Smart | China Baoan vs. 159681 | China Baoan vs. 159005 | China Baoan vs. Loctek Ergonomic Technology |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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