Correlation Between Advanced Micro and Quebecor
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Quebecor 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 Quebecor 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 Quebecor, you can compare the effects of market volatilities on Advanced Micro and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Quebecor.
Diversification Opportunities for Advanced Micro and Quebecor
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advanced and Quebecor is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Advanced Micro i.e., Advanced Micro and Quebecor go up and down completely randomly.
Pair Corralation between Advanced Micro and Quebecor
Assuming the 90 days trading horizon Advanced Micro Devices is expected to under-perform the Quebecor. In addition to that, Advanced Micro is 1.26 times more volatile than Quebecor. It trades about -0.12 of its total potential returns per unit of risk. Quebecor is currently generating about -0.15 per unit of volatility. If you would invest 3,467 in Quebecor on September 1, 2024 and sell it today you would lose (161.00) from holding Quebecor or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Devices vs. Quebecor
Performance |
| Timeline |
| Advanced Micro Devices |
| Quebecor |
Advanced Micro and Quebecor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Quebecor
The main advantage of trading using opposite Advanced Micro and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.| Advanced Micro vs. Reliq Health Technologies | Advanced Micro vs. Information Services | Advanced Micro vs. Jamieson Wellness | Advanced Micro vs. TUT Fitness Group |
| Quebecor vs. Cogeco Communications | Quebecor vs. Transcontinental | Quebecor vs. iA Financial | Quebecor vs. Saputo 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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