Correlation Between Advanced Micro and Here Media
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Here Media 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 Here Media 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 Here Media, you can compare the effects of market volatilities on Advanced Micro and Here Media 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 Here Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Here Media.
Diversification Opportunities for Advanced Micro and Here Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advanced and Here is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Here Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Here Media 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 Here Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Here Media has no effect on the direction of Advanced Micro i.e., Advanced Micro and Here Media go up and down completely randomly.
Pair Corralation between Advanced Micro and Here Media
If you would invest 0.02 in Here Media on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Here Media or generate 0.0% 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. Here Media
Performance |
| Timeline |
| Advanced Micro Devices |
| Here Media |
Advanced Micro and Here Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Here Media
The main advantage of trading using opposite Advanced Micro and Here Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Here Media 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 Here Media will offset losses from the drop in Here Media's long position.The idea behind Advanced Micro Devices and Here Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Here Media vs. FP Newspapers | Here Media vs. Scholastic | Here Media vs. Lee Enterprises Incorporated | Here Media vs. John Wiley Sons |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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