Correlation Between Eastern Communications and Advanced Micro
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By analyzing existing cross correlation between Eastern Communications Co and Advanced Micro Fabrication, you can compare the effects of market volatilities on Eastern Communications and Advanced Micro 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 Eastern Communications with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Advanced Micro.
Diversification Opportunities for Eastern Communications and Advanced Micro
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eastern and Advanced is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Advanced Micro Fabrication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Fabri and Eastern Communications 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 Eastern Communications Co are associated (or correlated) with Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Fabri has no effect on the direction of Eastern Communications i.e., Eastern Communications and Advanced Micro go up and down completely randomly.
Pair Corralation between Eastern Communications and Advanced Micro
Assuming the 90 days trading horizon Eastern Communications is expected to generate 1.84 times less return on investment than Advanced Micro. But when comparing it to its historical volatility, Eastern Communications Co is 1.69 times less risky than Advanced Micro. It trades about 0.11 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 17,325 in Advanced Micro Fabrication on September 13, 2024 and sell it today you would earn a total of 3,265 from holding Advanced Micro Fabrication or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.73% |
| Values | Daily Returns |
Eastern Communications Co vs. Advanced Micro Fabrication
Performance |
| Timeline |
| Eastern Communications |
| Advanced Micro Fabri |
Eastern Communications and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Advanced Micro
The main advantage of trading using opposite Eastern Communications and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. China Construction Bank | Eastern Communications vs. Bank of China | Eastern Communications vs. Agricultural Bank of |
| Advanced Micro vs. Guangxi Wuzhou Communications | Advanced Micro vs. Sanbo Hospital Management | Advanced Micro vs. Mingchen Health Co | Advanced Micro vs. Jilin Jlu Communication |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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