Correlation Between Micron Technology, and HLS Therapeutics

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

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

Diversification Opportunities for Micron Technology, and HLS Therapeutics

0.81

Correlation Coefficient

Micron Technology,  HLS Therapeutics

Very poor diversification

The 3 months correlation between Micron and HLS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology, and HLS Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLS Therapeutics 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 HLS Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLS Therapeutics has no effect on the direction of Micron Technology, i.e., Micron Technology, and HLS Therapeutics go up and down completely randomly.

Pair Corralation between Micron Technology, and HLS Therapeutics

Assuming the 90 days trading horizon Micron Technology, is expected to generate 1.29 times more return on investment than HLS Therapeutics. However, Micron Technology, is 1.29 times more volatile than HLS Therapeutics. It trades about 0.25 of its potential returns per unit of risk. HLS Therapeutics is currently generating about 0.16 per unit of risk. If you would invest  1,754  in Micron Technology, on April 24, 2025 and sell it today you would earn a total of  716.00  from holding Micron Technology, or generate 40.82% return on investment over 90 days.

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

Micron Technology,  vs.  HLS Therapeutics

Micron Technology,

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Micron Technology, are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Micron Technology, displayed solid returns over the last few months and may actually be approaching a breakup point.

HLS Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HLS Therapeutics are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, HLS Therapeutics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Micron Technology, and HLS Therapeutics

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

The idea behind Micron Technology, and HLS Therapeutics 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 Commodity Directory module to find actively traded commodities issued by global exchanges.