Correlation Between Advanced Micro and J Long
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and J Long 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 J Long 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 J Long Group Limited, you can compare the effects of market volatilities on Advanced Micro and J Long 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 J Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and J Long.
Diversification Opportunities for Advanced Micro and J Long
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advanced and J Long is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and J Long Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Long Group 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 J Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Long Group has no effect on the direction of Advanced Micro i.e., Advanced Micro and J Long go up and down completely randomly.
Pair Corralation between Advanced Micro and J Long
Considering the 90-day investment horizon Advanced Micro Devices is expected to generate 0.27 times more return on investment than J Long. However, Advanced Micro Devices is 3.7 times less risky than J Long. It trades about -0.3 of its potential returns per unit of risk. J Long Group Limited is currently generating about -0.21 per unit of risk. If you would invest 14,735 in Advanced Micro Devices on September 12, 2024 and sell it today you would lose (1,961) from holding Advanced Micro Devices or give up 13.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Devices vs. J Long Group Limited
Performance |
| Timeline |
| Advanced Micro Devices |
| J Long Group |
Advanced Micro and J Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and J Long
The main advantage of trading using opposite Advanced Micro and J Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, J Long 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 J Long will offset losses from the drop in J Long's long position.| Advanced Micro vs. NVIDIA | Advanced Micro vs. Taiwan Semiconductor Manufacturing | Advanced Micro vs. Micron Technology | Advanced Micro vs. Qualcomm Incorporated |
| J Long vs. Ermenegildo Zegna NV | J Long vs. Columbia Sportswear | J Long vs. Gildan Activewear | J Long vs. G III Apparel Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |