Correlation Between Advanced Micro and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and XLMedia PLC 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 XLMedia PLC 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 XLMedia PLC, you can compare the effects of market volatilities on Advanced Micro and XLMedia PLC 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and XLMedia PLC.
Diversification Opportunities for Advanced Micro and XLMedia PLC
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advanced and XLMedia is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of Advanced Micro i.e., Advanced Micro and XLMedia PLC go up and down completely randomly.
Pair Corralation between Advanced Micro and XLMedia PLC
If you would invest 14.00 in XLMedia PLC on September 12, 2024 and sell it today you would earn a total of 0.00 from holding XLMedia PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Devices vs. XLMedia PLC
Performance |
| Timeline |
| Advanced Micro Devices |
| XLMedia PLC |
Advanced Micro and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and XLMedia PLC
The main advantage of trading using opposite Advanced Micro and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| Advanced Micro vs. XLMedia PLC | Advanced Micro vs. TOWNSQUARE MEDIA INC | Advanced Micro vs. SENECA FOODS A | Advanced Micro vs. Hollywood Bowl Group |
| XLMedia PLC vs. CENTURIA OFFICE REIT | XLMedia PLC vs. Safety Insurance Group | XLMedia PLC vs. Selective Insurance Group | XLMedia PLC vs. bet at home AG |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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