Pair Correlation Between Intel and Micron Technology

This module allows you to analyze existing cross correlation between Intel Corporation and Micron Technology Inc. You can compare the effects of market volatilities on Intel and Micron Technology 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 Intel with a short position of Micron Technology. See also your portfolio center. Please also check ongoing floating volatility patterns of Intel and Micron Technology.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Intel Corp.  vs   Micron Technology Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Intel is expected to generate 2.15 times less return on investment than Micron Technology. But when comparing it to its historical volatility, Intel Corporation is 3.52 times less risky than Micron Technology. It trades about 0.55 of its potential returns per unit of risk. Micron Technology Inc is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  3,487  in Micron Technology Inc on September 24, 2017 and sell it today you would earn a total of  669  from holding Micron Technology Inc or generate 19.19% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Intel and Micron Technology
0.91

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Intel

  
35 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Intel Corporation are ranked lower than 35 (%) of all global equities and portfolios over the last 30 days.

Micron Technology Inc

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Micron Technology Inc are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.