Correlation Between Advanced Micro and Shanghai OPM
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By analyzing existing cross correlation between Advanced Micro Fabrication and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Advanced Micro and Shanghai OPM 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 Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Shanghai OPM.
Diversification Opportunities for Advanced Micro and Shanghai OPM
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advanced and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Fabrication and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Advanced Micro i.e., Advanced Micro and Shanghai OPM go up and down completely randomly.
Pair Corralation between Advanced Micro and Shanghai OPM
Assuming the 90 days trading horizon Advanced Micro Fabrication is expected to generate 0.88 times more return on investment than Shanghai OPM. However, Advanced Micro Fabrication is 1.14 times less risky than Shanghai OPM. It trades about 0.04 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about -0.02 per unit of risk. If you would invest 16,990 in Advanced Micro Fabrication on August 26, 2024 and sell it today you would earn a total of 3,956 from holding Advanced Micro Fabrication or generate 23.28% 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. Shanghai OPM Biosciences
Performance |
| Timeline |
| Advanced Micro Fabri |
| Shanghai OPM Biosciences |
Advanced Micro and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Shanghai OPM
The main advantage of trading using opposite Advanced Micro and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Shanghai OPM 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 Shanghai OPM will offset losses from the drop in Shanghai OPM's long position.| Advanced Micro vs. Lutian Machinery Co | Advanced Micro vs. China Longyuan Power | Advanced Micro vs. Changshu Tongrun Auto | Advanced Micro vs. PetroChina Co Ltd |
| Shanghai OPM vs. Industrial and Commercial | Shanghai OPM vs. China Construction Bank | Shanghai OPM vs. Agricultural Bank of | Shanghai OPM vs. Bank of China |
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 CEOs Directory module to screen CEOs from public companies around the world.
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