Correlation Between Wuhan Yangtze and Advanced Micro
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Advanced Micro Fabrication, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Advanced Micro.
Diversification Opportunities for Wuhan Yangtze and Advanced Micro
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Advanced is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication 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 Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and Advanced Micro go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Advanced Micro
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.49 times more return on investment than Advanced Micro. However, Wuhan Yangtze is 1.49 times more volatile than Advanced Micro Fabrication. It trades about 0.3 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about 0.19 per unit of risk. If you would invest 1,927 in Wuhan Yangtze Communication on August 30, 2024 and sell it today you would earn a total of 917.00 from holding Wuhan Yangtze Communication or generate 47.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Advanced Micro Fabrication
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Advanced Micro Fabri |
Wuhan Yangtze and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Advanced Micro
The main advantage of trading using opposite Wuhan Yangtze and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. China State Construction | Wuhan Yangtze vs. Huafa Industrial Co | Wuhan Yangtze vs. China International Capital | Wuhan Yangtze vs. Kweichow Moutai Co |
| Advanced Micro vs. Sichuan Hebang Biotechnology | Advanced Micro vs. ROPEOK Technology Group | Advanced Micro vs. Guangzhou Haige Communications | Advanced Micro vs. Guangdong Marubi Biotechnology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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