Correlation Between Micron Technology and JPMorgan ETFs

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

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

Diversification Opportunities for Micron Technology and JPMorgan ETFs

-0.48

Correlation Coefficient

Micron Technology  JPMorgan ETFs

Very good diversification

The 3 months correlation between Micron and JPMorgan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and JPMorgan ETFs ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan ETFs ICAV 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 JPMorgan ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan ETFs ICAV has no effect on the direction of Micron Technology i.e., Micron Technology and JPMorgan ETFs go up and down completely randomly.

Pair Corralation between Micron Technology and JPMorgan ETFs

Allowing for the 90-day total investment horizon Micron Technology is expected to under-perform the JPMorgan ETFs. In addition to that, Micron Technology is 9.51 times more volatile than JPMorgan ETFs ICAV. It trades about -0.07 of its total potential returns per unit of risk. JPMorgan ETFs ICAV is currently generating about 0.06 per unit of volatility. If you would invest  9,412  in JPMorgan ETFs ICAV on September 30, 2024 and sell it today you would earn a total of  265.00  from holding JPMorgan ETFs ICAV or generate 2.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.21%
Values	Daily Returns

Micron Technology  vs.  JPMorgan ETFs ICAV

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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

JPMorgan ETFs ICAV

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan ETFs ICAV are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, JPMorgan ETFs may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Micron Technology and JPMorgan ETFs

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

The idea behind Micron Technology and JPMorgan ETFs ICAV 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.