Correlation Between Advanced Micro and Sichuan Hebang
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By analyzing existing cross correlation between Advanced Micro Fabrication and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Advanced Micro and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Sichuan Hebang.
Diversification Opportunities for Advanced Micro and Sichuan Hebang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advanced and Sichuan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Fabrication and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Advanced Micro i.e., Advanced Micro and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Advanced Micro and Sichuan Hebang
Assuming the 90 days trading horizon Advanced Micro Fabrication is expected to generate 1.88 times more return on investment than Sichuan Hebang. However, Advanced Micro is 1.88 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.12 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about 0.03 per unit of risk. If you would invest 13,731 in Advanced Micro Fabrication on September 1, 2024 and sell it today you would earn a total of 8,469 from holding Advanced Micro Fabrication or generate 61.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Advanced Micro Fabrication vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Advanced Micro Fabri |
| Sichuan Hebang Biote |
Advanced Micro and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Sichuan Hebang
The main advantage of trading using opposite Advanced Micro and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Advanced Micro vs. Industrial and Commercial | Advanced Micro vs. Kweichow Moutai Co | Advanced Micro vs. Agricultural Bank of | Advanced Micro vs. China Mobile Limited |
| Sichuan Hebang vs. Zijin Mining Group | Sichuan Hebang vs. Wanhua Chemical Group | Sichuan Hebang vs. Baoshan Iron Steel | Sichuan Hebang vs. Shandong Gold Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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