Correlation Between Micron Technology and Examobile

Can any of the company-specific risk be diversified away by investing in both Micron Technology and Examobile 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 Examobile into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Micron Technology and Examobile SA, you can compare the effects of market volatilities on Micron Technology and Examobile 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 Examobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Examobile.

Diversification Opportunities for Micron Technology and Examobile

-0.16

Correlation Coefficient

Micron Technology  Examobile

Good diversification

The 3 months correlation between Micron and Examobile is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Examobile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Examobile SA 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 Examobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Examobile SA has no effect on the direction of Micron Technology i.e., Micron Technology and Examobile go up and down completely randomly.

Pair Corralation between Micron Technology and Examobile

Allowing for the 90-day total investment horizon Micron Technology is expected to under-perform the Examobile. In addition to that, Micron Technology is 1.04 times more volatile than Examobile SA. It trades about -0.11 of its total potential returns per unit of risk. Examobile SA is currently generating about 0.2 per unit of volatility. If you would invest  334.00  in Examobile SA on September 27, 2024 and sell it today you would earn a total of  22.00  from holding Examobile SA or generate 6.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	36.36%
Values	Daily Returns

Micron Technology  vs.  Examobile SA

Micron Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Micron Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Examobile SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Examobile SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Examobile may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Micron Technology and Examobile

The main advantage of trading using opposite Micron Technology and Examobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, Examobile 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 Examobile will offset losses from the drop in Examobile's long position.

The idea behind Micron Technology and Examobile SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.