Correlation Between Micron Technology and 06051GJL4
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By analyzing existing cross correlation between Micron Technology and BANK OF AMERICA, you can compare the effects of market volatilities on Micron Technology and 06051GJL4 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 06051GJL4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and 06051GJL4.
Diversification Opportunities for Micron Technology and 06051GJL4
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Micron and 06051GJL4 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and BANK OF AMERICA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK OF AMERICA 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 06051GJL4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK OF AMERICA has no effect on the direction of Micron Technology i.e., Micron Technology and 06051GJL4 go up and down completely randomly.
Pair Corralation between Micron Technology and 06051GJL4
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 2.08 times more return on investment than 06051GJL4. However, Micron Technology is 2.08 times more volatile than BANK OF AMERICA. It trades about 0.1 of its potential returns per unit of risk. BANK OF AMERICA is currently generating about -0.01 per unit of risk. If you would invest 8,708 in Micron Technology on September 14, 2024 and sell it today you would earn a total of 1,498 from holding Micron Technology or generate 17.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.83% |
Values | Daily Returns |
Micron Technology vs. BANK OF AMERICA
Performance |
Timeline |
Micron Technology |
BANK OF AMERICA |
Micron Technology and 06051GJL4 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Micron Technology and 06051GJL4
The main advantage of trading using opposite Micron Technology and 06051GJL4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology position performs unexpectedly, 06051GJL4 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 06051GJL4 will offset losses from the drop in 06051GJL4's long position.Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
06051GJL4 vs. Yuexiu Transport Infrastructure | 06051GJL4 vs. AMCON Distributing | 06051GJL4 vs. Old Dominion Freight | 06051GJL4 vs. Sligro Food Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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