Correlation Between Advanced Micro and Zebra Technologies
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Zebra Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Advanced Micro and Zebra Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Micro Devices and Zebra Technologies, you can compare the effects of market volatilities on Advanced Micro and Zebra Technologies 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 Zebra Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Zebra Technologies.
Diversification Opportunities for Advanced Micro and Zebra Technologies
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and Zebra is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Zebra Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zebra Technologies 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 Devices are associated (or correlated) with Zebra Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zebra Technologies has no effect on the direction of Advanced Micro i.e., Advanced Micro and Zebra Technologies go up and down completely randomly.
Pair Corralation between Advanced Micro and Zebra Technologies
Assuming the 90 days trading horizon Advanced Micro Devices is expected to under-perform the Zebra Technologies. In addition to that, Advanced Micro is 2.66 times more volatile than Zebra Technologies. It trades about -0.29 of its total potential returns per unit of risk. Zebra Technologies is currently generating about 0.0 per unit of volatility. If you would invest 7,928 in Zebra Technologies on November 5, 2024 and sell it today you would lose (15.00) from holding Zebra Technologies or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Devices vs. Zebra Technologies
Performance |
| Timeline |
| Advanced Micro Devices |
| Zebra Technologies |
Advanced Micro and Zebra Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Zebra Technologies
The main advantage of trading using opposite Advanced Micro and Zebra Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Zebra Technologies 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 Zebra Technologies will offset losses from the drop in Zebra Technologies' long position.| Advanced Micro vs. Air Products and | Advanced Micro vs. Patria Investments Limited | Advanced Micro vs. Ryanair Holdings plc | Advanced Micro vs. JB Hunt Transport |
| Zebra Technologies vs. Extra Space Storage | Zebra Technologies vs. Melco Resorts Entertainment | Zebra Technologies vs. Cognizant Technology Solutions | Zebra Technologies vs. salesforce inc |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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