Correlation Between 159681 and Advanced Micro
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By analyzing existing cross correlation between 159681 and Advanced Micro Fabrication, you can compare the effects of market volatilities on 159681 and Advanced Micro 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 159681 with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Advanced Micro.
Diversification Opportunities for 159681 and Advanced Micro
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Advanced is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Advanced Micro Fabrication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Fabri and 159681 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 159681 are associated (or correlated) with Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Fabri has no effect on the direction of 159681 i.e., 159681 and Advanced Micro go up and down completely randomly.
Pair Corralation between 159681 and Advanced Micro
Assuming the 90 days trading horizon 159681 is expected to generate 0.63 times more return on investment than Advanced Micro. However, 159681 is 1.59 times less risky than Advanced Micro. It trades about 0.04 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about -0.05 per unit of risk. If you would invest 96.00 in 159681 on September 24, 2024 and sell it today you would earn a total of 1.00 from holding 159681 or generate 1.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
159681 vs. Advanced Micro Fabrication
Performance |
Timeline |
159681 |
Advanced Micro Fabri |
159681 and Advanced Micro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 159681 and Advanced Micro
The main advantage of trading using opposite 159681 and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.The idea behind 159681 and Advanced Micro Fabrication 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.Advanced Micro vs. Ming Yang Smart | Advanced Micro vs. 159681 | Advanced Micro vs. 159005 | Advanced Micro vs. Loctek Ergonomic Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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