Correlation Between Birchtech Corp and Micron Technology,

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

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

Diversification Opportunities for Birchtech Corp and Micron Technology,

0.75

Correlation Coefficient

Birchtech Corp  Micron Technology,

Poor diversification

The 3 months correlation between Birchtech and Micron is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Birchtech Corp and Micron Technology, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micron Technology, and Birchtech Corp 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 Birchtech Corp 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, has no effect on the direction of Birchtech Corp i.e., Birchtech Corp and Micron Technology, go up and down completely randomly.

Pair Corralation between Birchtech Corp and Micron Technology,

Assuming the 90 days trading horizon Birchtech Corp is expected to generate 1.13 times less return on investment than Micron Technology,. In addition to that, Birchtech Corp is 1.14 times more volatile than Micron Technology,. It trades about 0.22 of its total potential returns per unit of risk. Micron Technology, is currently generating about 0.28 per unit of volatility. If you would invest  1,555  in Micron Technology, on April 7, 2025 and sell it today you would earn a total of  1,205  from holding Micron Technology, or generate 77.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Birchtech Corp  vs.  Micron Technology,

Birchtech Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Birchtech Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Birchtech Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Micron Technology,

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Micron Technology, are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Micron Technology, displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Birchtech Corp and Micron Technology,

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

The idea behind Birchtech Corp and Micron Technology, 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.