Correlation Between QuickLogic and Advanced Micro

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Can any of the company-specific risk be diversified away by investing in both QuickLogic and Advanced Micro 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 QuickLogic and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QuickLogic and Advanced Micro Devices, you can compare the effects of market volatilities on QuickLogic 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 QuickLogic with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of QuickLogic and Advanced Micro.

Diversification Opportunities for QuickLogic and Advanced Micro

QuickLogicAdvancedDiversified AwayQuickLogicAdvancedDiversified Away100%
0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between QuickLogic and Advanced is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding QuickLogic and Advanced Micro Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Devices and QuickLogic 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 QuickLogic 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 Devices has no effect on the direction of QuickLogic i.e., QuickLogic and Advanced Micro go up and down completely randomly.

Pair Corralation between QuickLogic and Advanced Micro

Given the investment horizon of 90 days QuickLogic is expected to generate 1.27 times more return on investment than Advanced Micro. However, QuickLogic is 1.27 times more volatile than Advanced Micro Devices. It trades about -0.04 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about -0.06 per unit of risk. If you would invest  1,044  in QuickLogic on September 24, 2024 and sell it today you would lose (260.00) from holding QuickLogic or give up 24.9% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

QuickLogic  vs.  Advanced Micro Devices

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -20-1001020
JavaScript chart by amCharts 3.21.15QUIK AMD
       Timeline  
QuickLogic 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in QuickLogic are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal forward indicators, QuickLogic may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec77.588.59
Advanced Micro Devices 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Advanced Micro Devices has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec120130140150160170

QuickLogic and Advanced Micro Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.86-8.14-5.41-2.680.02.745.538.3211.1 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.15QUIK AMD
       Returns  

Pair Trading with QuickLogic and Advanced Micro

The main advantage of trading using opposite QuickLogic and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QuickLogic 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 QuickLogic and Advanced Micro Devices 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 Channel module to use Commodity Channel Index to analyze current equity momentum.

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