Correlation Between Advanced Micro and Telecom Argentina
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Telecom Argentina 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 Telecom Argentina 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 Telecom Argentina, you can compare the effects of market volatilities on Advanced Micro and Telecom Argentina 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 Telecom Argentina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Telecom Argentina.
Diversification Opportunities for Advanced Micro and Telecom Argentina
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and Telecom is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Telecom Argentina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Argentina 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 Telecom Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Argentina has no effect on the direction of Advanced Micro i.e., Advanced Micro and Telecom Argentina go up and down completely randomly.
Pair Corralation between Advanced Micro and Telecom Argentina
Assuming the 90 days trading horizon Advanced Micro Devices is expected to generate 1.47 times more return on investment than Telecom Argentina. However, Advanced Micro is 1.47 times more volatile than Telecom Argentina. It trades about 0.1 of its potential returns per unit of risk. Telecom Argentina is currently generating about -0.13 per unit of risk. If you would invest 3,214,000 in Advanced Micro Devices on October 17, 2025 and sell it today you would earn a total of 168,000 from holding Advanced Micro Devices or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Advanced Micro Devices vs. Telecom Argentina
Performance |
| Timeline |
| Advanced Micro Devices |
| Telecom Argentina |
Advanced Micro and Telecom Argentina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Telecom Argentina
The main advantage of trading using opposite Advanced Micro and Telecom Argentina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Telecom Argentina 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 Telecom Argentina will offset losses from the drop in Telecom Argentina's long position.| Advanced Micro vs. Telecom Argentina | Advanced Micro vs. Verizon Communications | Advanced Micro vs. Transportadora de Gas | Advanced Micro vs. Agrometal SAI |
| Telecom Argentina vs. Agrometal SAI | Telecom Argentina vs. Verizon Communications | Telecom Argentina vs. Lloyds Banking Group | Telecom Argentina vs. Palantir Technologies |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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