Correlation Between Advanced Micro and Tuxis
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Tuxis 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 Tuxis 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 Tuxis, you can compare the effects of market volatilities on Advanced Micro and Tuxis 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 Tuxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Tuxis.
Diversification Opportunities for Advanced Micro and Tuxis
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Advanced and Tuxis is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Tuxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuxis 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 Tuxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuxis has no effect on the direction of Advanced Micro i.e., Advanced Micro and Tuxis go up and down completely randomly.
Pair Corralation between Advanced Micro and Tuxis
If you would invest 230.00 in Tuxis on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Tuxis or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Advanced Micro Devices vs. Tuxis
Performance |
| Timeline |
| Advanced Micro Devices |
| Tuxis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advanced Micro and Tuxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Tuxis
The main advantage of trading using opposite Advanced Micro and Tuxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Tuxis 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 Tuxis will offset losses from the drop in Tuxis' long position.| Advanced Micro vs. Taiwan Semiconductor Manufacturing | Advanced Micro vs. Intel | Advanced Micro vs. Marvell Technology Group | Advanced Micro vs. Micron Technology |
| Tuxis vs. Electrovaya Common Shares | Tuxis vs. Payoneer Global | Tuxis vs. Usio Inc | Tuxis vs. Highway Holdings Limited |
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.
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