Correlation Between Advanced Micro and Wuhan Yangtze
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By analyzing existing cross correlation between Advanced Micro Fabrication and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Advanced Micro and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Wuhan Yangtze.
Diversification Opportunities for Advanced Micro and Wuhan Yangtze
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advanced and Wuhan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Fabrication and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Advanced Micro i.e., Advanced Micro and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Advanced Micro and Wuhan Yangtze
Assuming the 90 days trading horizon Advanced Micro Fabrication is expected to generate 0.95 times more return on investment than Wuhan Yangtze. However, Advanced Micro Fabrication is 1.06 times less risky than Wuhan Yangtze. It trades about 0.06 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about 0.05 per unit of risk. If you would invest 10,700 in Advanced Micro Fabrication on August 30, 2024 and sell it today you would earn a total of 10,484 from holding Advanced Micro Fabrication or generate 97.98% 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. Wuhan Yangtze Communication
Performance |
| Timeline |
| Advanced Micro Fabri |
| Wuhan Yangtze Commun |
Advanced Micro and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Wuhan Yangtze
The main advantage of trading using opposite Advanced Micro and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Advanced Micro vs. Sichuan Hebang Biotechnology | Advanced Micro vs. ROPEOK Technology Group | Advanced Micro vs. Guangzhou Haige Communications | Advanced Micro vs. Guangdong Marubi Biotechnology |
| Wuhan Yangtze vs. China State Construction | Wuhan Yangtze vs. Huafa Industrial Co | Wuhan Yangtze vs. China International Capital | Wuhan Yangtze vs. Kweichow Moutai 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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