Correlation Between Longmaster Information and Advanced Micro
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By analyzing existing cross correlation between Longmaster Information Tech and Advanced Micro Fabrication, you can compare the effects of market volatilities on Longmaster Information 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 Longmaster Information with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Advanced Micro.
Diversification Opportunities for Longmaster Information and Advanced Micro
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longmaster and Advanced is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech 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 Longmaster Information 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 Longmaster Information Tech 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 Longmaster Information i.e., Longmaster Information and Advanced Micro go up and down completely randomly.
Pair Corralation between Longmaster Information and Advanced Micro
Assuming the 90 days trading horizon Longmaster Information Tech is expected to generate 1.44 times more return on investment than Advanced Micro. However, Longmaster Information is 1.44 times more volatile than Advanced Micro Fabrication. It trades about 0.14 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about -0.22 per unit of risk. If you would invest 1,599 in Longmaster Information Tech on September 14, 2024 and sell it today you would earn a total of 203.00 from holding Longmaster Information Tech or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Advanced Micro Fabrication
Performance |
| Timeline |
| Longmaster Information |
| Advanced Micro Fabri |
Longmaster Information and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Advanced Micro
The main advantage of trading using opposite Longmaster Information and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information 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.| Longmaster Information vs. China Mobile Limited | Longmaster Information vs. Agricultural Bank of | Longmaster Information vs. Industrial and Commercial | Longmaster Information vs. China State Construction |
| Advanced Micro vs. Longmaster Information Tech | Advanced Micro vs. YLZ Information Tech | Advanced Micro vs. AVCON Information Tech | Advanced Micro vs. Holitech Technology Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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