Correlation Between Advanced Micro and EvoAir Holdings
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings, you can compare the effects of market volatilities on Advanced Micro and EvoAir Holdings 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 EvoAir Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and EvoAir Holdings.
Diversification Opportunities for Advanced Micro and EvoAir Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advanced and EvoAir is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and EvoAir Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EvoAir Holdings 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 EvoAir Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EvoAir Holdings has no effect on the direction of Advanced Micro i.e., Advanced Micro and EvoAir Holdings go up and down completely randomly.
Pair Corralation between Advanced Micro and EvoAir Holdings
Considering the 90-day investment horizon Advanced Micro Devices is expected to generate 15.09 times more return on investment than EvoAir Holdings. However, Advanced Micro is 15.09 times more volatile than EvoAir Holdings. It trades about 0.06 of its potential returns per unit of risk. EvoAir Holdings is currently generating about 0.05 per unit of risk. If you would invest 6,724 in Advanced Micro Devices on August 31, 2024 and sell it today you would earn a total of 6,900 from holding Advanced Micro Devices or generate 102.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Devices vs. EvoAir Holdings
Performance |
| Timeline |
| Advanced Micro Devices |
| EvoAir Holdings |
Advanced Micro and EvoAir Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and EvoAir Holdings
The main advantage of trading using opposite Advanced Micro and EvoAir Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, EvoAir Holdings 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 EvoAir Holdings will offset losses from the drop in EvoAir Holdings' long position.| Advanced Micro vs. Taiwan Semiconductor Manufacturing | Advanced Micro vs. Intel | Advanced Micro vs. Marvell Technology Group | Advanced Micro vs. Micron Technology |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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