Correlation Between Micron Technology and Hemosense

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

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

Diversification Opportunities for Micron Technology and Hemosense

0.0

Correlation Coefficient

Micron Technology  Hemosense

Pay attention - limited upside

The 3 months correlation between Micron and Hemosense is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Hemosense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemosense 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 Hemosense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemosense has no effect on the direction of Micron Technology i.e., Micron Technology and Hemosense go up and down completely randomly.

Pair Corralation between Micron Technology and Hemosense

If you would invest (100.00) in Hemosense on September 26, 2024 and sell it today you would earn a total of  100.00  from holding Hemosense or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Micron Technology  vs.  Hemosense

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.

Hemosense

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hemosense has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Hemosense is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Micron Technology and Hemosense

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

The idea behind Micron Technology and Hemosense 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.