Correlation Between Advanced Micro and Tefron
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Tefron 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 Tefron 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 Tefron, you can compare the effects of market volatilities on Advanced Micro and Tefron 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 Tefron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Tefron.
Diversification Opportunities for Advanced Micro and Tefron
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advanced and Tefron is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Tefron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tefron 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 Tefron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tefron has no effect on the direction of Advanced Micro i.e., Advanced Micro and Tefron go up and down completely randomly.
Pair Corralation between Advanced Micro and Tefron
If you would invest 14,071 in Advanced Micro Devices on September 5, 2024 and sell it today you would earn a total of 127.00 from holding Advanced Micro Devices or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Advanced Micro Devices vs. Tefron
Performance |
| Timeline |
| Advanced Micro Devices |
| Tefron |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advanced Micro and Tefron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Tefron
The main advantage of trading using opposite Advanced Micro and Tefron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Tefron 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 Tefron will offset losses from the drop in Tefron's long position.| Advanced Micro vs. NXP Semiconductors NV | Advanced Micro vs. Monolithic Power Systems | Advanced Micro vs. ON Semiconductor | Advanced Micro vs. GSI Technology |
| Tefron vs. Advanced Micro Devices | Tefron vs. ON Semiconductor | Tefron vs. Taiwan Semiconductor Manufacturing | Tefron vs. Globalfoundries |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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