Correlation Between Advanced Micro and Qingdao Hi
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By analyzing existing cross correlation between Advanced Micro Fabrication and Qingdao Hi Tech Moulds, you can compare the effects of market volatilities on Advanced Micro and Qingdao Hi 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 Advanced Micro with a short position of Qingdao Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Qingdao Hi.
Diversification Opportunities for Advanced Micro and Qingdao Hi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advanced and Qingdao is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Fabrication and Qingdao Hi Tech Moulds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Hi Tech and Advanced Micro 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 Advanced Micro Fabrication are associated (or correlated) with Qingdao Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Hi Tech has no effect on the direction of Advanced Micro i.e., Advanced Micro and Qingdao Hi go up and down completely randomly.
Pair Corralation between Advanced Micro and Qingdao Hi
Assuming the 90 days trading horizon Advanced Micro Fabrication is expected to generate 0.71 times more return on investment than Qingdao Hi. However, Advanced Micro Fabrication is 1.41 times less risky than Qingdao Hi. It trades about 0.06 of its potential returns per unit of risk. Qingdao Hi Tech Moulds is currently generating about 0.01 per unit of risk. If you would invest 13,515 in Advanced Micro Fabrication on September 12, 2024 and sell it today you would earn a total of 8,187 from holding Advanced Micro Fabrication or generate 60.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Fabrication vs. Qingdao Hi Tech Moulds
Performance |
| Timeline |
| Advanced Micro Fabri |
| Qingdao Hi Tech |
Advanced Micro and Qingdao Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Qingdao Hi
The main advantage of trading using opposite Advanced Micro and Qingdao Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Qingdao Hi 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 Qingdao Hi will offset losses from the drop in Qingdao Hi's long position.| Advanced Micro vs. Dongfeng Automobile Co | Advanced Micro vs. Fiberhome Telecommunication Technologies | Advanced Micro vs. Lier Chemical Co | Advanced Micro vs. Eastern Communications Co |
| Qingdao Hi vs. Agricultural Bank of | Qingdao Hi vs. Industrial and Commercial | Qingdao Hi vs. Bank of China | Qingdao Hi vs. PetroChina Co Ltd |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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