Correlation Between Micron Technology and China Union
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By analyzing existing cross correlation between Micron Technology and China Union Holdings, you can compare the effects of market volatilities on Micron Technology and China Union 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 Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and China Union.
Diversification Opportunities for Micron Technology and China Union
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Micron and China is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings 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 Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Micron Technology i.e., Micron Technology and China Union go up and down completely randomly.
Pair Corralation between Micron Technology and China Union
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 2.08 times more return on investment than China Union. However, Micron Technology is 2.08 times more volatile than China Union Holdings. It trades about -0.13 of its potential returns per unit of risk. China Union Holdings is currently generating about -0.44 per unit of risk. If you would invest 10,448 in Micron Technology on September 24, 2024 and sell it today you would lose (1,436) from holding Micron Technology or give up 13.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Micron Technology vs. China Union Holdings
Performance |
Timeline |
Micron Technology |
China Union Holdings |
Micron Technology and China Union Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and China Union
The main advantage of trading using opposite Micron Technology and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, China Union 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 Union will offset losses from the drop in China Union's long position.Micron Technology vs. Diodes Incorporated | Micron Technology vs. Daqo New Energy | Micron Technology vs. Nano Labs | Micron Technology vs. Impinj Inc |
China Union vs. PetroChina Co Ltd | China Union vs. China Mobile Limited | China Union vs. CNOOC Limited | China Union vs. Ping An Insurance |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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