Correlation Between Guangzhou Haige and Advanced Micro
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By analyzing existing cross correlation between Guangzhou Haige Communications and Advanced Micro Fabrication, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Advanced Micro.
Diversification Opportunities for Guangzhou Haige and Advanced Micro
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Advanced is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications 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 Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Advanced Micro go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Advanced Micro
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 1.13 times less return on investment than Advanced Micro. But when comparing it to its historical volatility, Guangzhou Haige Communications is 1.17 times less risky than Advanced Micro. It trades about 0.17 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 19,243 in Advanced Micro Fabrication on September 1, 2024 and sell it today you would earn a total of 2,957 from holding Advanced Micro Fabrication or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Advanced Micro Fabrication
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Advanced Micro Fabri |
Guangzhou Haige and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Advanced Micro
The main advantage of trading using opposite Guangzhou Haige and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Mobile Limited |
| Advanced Micro vs. Industrial and Commercial | Advanced Micro vs. Kweichow Moutai Co | Advanced Micro vs. Agricultural Bank of | Advanced Micro vs. China Mobile Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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