Correlation Between Advanced Micro and Shanghai Bailian
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By analyzing existing cross correlation between Advanced Micro Fabrication and Shanghai Bailian Group, you can compare the effects of market volatilities on Advanced Micro and Shanghai Bailian 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 Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Shanghai Bailian.
Diversification Opportunities for Advanced Micro and Shanghai Bailian
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Advanced and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Fabrication and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Advanced Micro i.e., Advanced Micro and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Advanced Micro and Shanghai Bailian
Assuming the 90 days trading horizon Advanced Micro Fabrication is expected to generate 1.69 times more return on investment than Shanghai Bailian. However, Advanced Micro is 1.69 times more volatile than Shanghai Bailian Group. It trades about 0.15 of its potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.23 per unit of risk. If you would invest 16,400 in Advanced Micro Fabrication on August 30, 2024 and sell it today you would earn a total of 4,784 from holding Advanced Micro Fabrication or generate 29.17% 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 Bailian Group
Performance |
| Timeline |
| Advanced Micro Fabri |
| Shanghai Bailian |
Advanced Micro and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Shanghai Bailian
The main advantage of trading using opposite Advanced Micro and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Shanghai Bailian 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 Bailian will offset losses from the drop in Shanghai Bailian's long position.| Advanced Micro vs. Qinghaihuading Industrial Co | Advanced Micro vs. Qingdao Choho Industrial | Advanced Micro vs. Sichuan Yahua Industrial | Advanced Micro vs. Duzhe Publishing Media |
| Shanghai Bailian vs. Jinhe Biotechnology Co | Shanghai Bailian vs. Changchun BCHT Biotechnology | Shanghai Bailian vs. Bomesc Offshore Engineering | Shanghai Bailian vs. Healthcare 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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