Correlation Between Advanced Micro and PharmaResources
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By analyzing existing cross correlation between Advanced Micro Fabrication and PharmaResources Co Ltd, you can compare the effects of market volatilities on Advanced Micro and PharmaResources 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 PharmaResources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and PharmaResources.
Diversification Opportunities for Advanced Micro and PharmaResources
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advanced and PharmaResources is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Fabrication and PharmaResources Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PharmaResources 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 PharmaResources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PharmaResources has no effect on the direction of Advanced Micro i.e., Advanced Micro and PharmaResources go up and down completely randomly.
Pair Corralation between Advanced Micro and PharmaResources
Assuming the 90 days trading horizon Advanced Micro Fabrication is expected to generate 1.03 times more return on investment than PharmaResources. However, Advanced Micro is 1.03 times more volatile than PharmaResources Co Ltd. It trades about 0.07 of its potential returns per unit of risk. PharmaResources Co Ltd is currently generating about 0.04 per unit of risk. If you would invest 15,050 in Advanced Micro Fabrication on September 19, 2024 and sell it today you would earn a total of 4,040 from holding Advanced Micro Fabrication or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Fabrication vs. PharmaResources Co Ltd
Performance |
| Timeline |
| Advanced Micro Fabri |
| PharmaResources |
Advanced Micro and PharmaResources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and PharmaResources
The main advantage of trading using opposite Advanced Micro and PharmaResources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, PharmaResources 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 PharmaResources will offset losses from the drop in PharmaResources' long position.| Advanced Micro vs. Heilongjiang Publishing Media | Advanced Micro vs. Dazhong Transportation Group | Advanced Micro vs. Guangzhou Jinyi Media | Advanced Micro vs. Heilongjiang Transport Development |
| PharmaResources vs. Industrial and Commercial | PharmaResources vs. China Construction Bank | PharmaResources vs. Bank of China | PharmaResources vs. Agricultural Bank of |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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