Correlation Between Globus Medical, and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both Globus Medical, and Advanced Micro 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 Globus Medical, and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globus Medical, and Advanced Micro Devices, you can compare the effects of market volatilities on Globus Medical, and Advanced Micro 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 Globus Medical, with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globus Medical, and Advanced Micro.
Diversification Opportunities for Globus Medical, and Advanced Micro
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Globus and Advanced is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Globus Medical, and Advanced Micro Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Devices and Globus Medical, 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 Globus Medical, are associated (or correlated) with Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Devices has no effect on the direction of Globus Medical, i.e., Globus Medical, and Advanced Micro go up and down completely randomly.
Pair Corralation between Globus Medical, and Advanced Micro
Assuming the 90 days trading horizon Globus Medical, is expected to generate 0.8 times more return on investment than Advanced Micro. However, Globus Medical, is 1.25 times less risky than Advanced Micro. It trades about 0.1 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about -0.14 per unit of risk. If you would invest 6,510 in Globus Medical, on November 3, 2024 and sell it today you would earn a total of 315.00 from holding Globus Medical, or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globus Medical, vs. Advanced Micro Devices
Performance |
| Timeline |
| Globus Medical, |
| Advanced Micro Devices |
Globus Medical, and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globus Medical, and Advanced Micro
The main advantage of trading using opposite Globus Medical, and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globus Medical, position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.| Globus Medical, vs. Taiwan Semiconductor Manufacturing | Globus Medical, vs. Apple Inc | Globus Medical, vs. Alibaba Group Holding | Globus Medical, vs. Microsoft |
| Advanced Micro vs. salesforce inc | Advanced Micro vs. United Rentals | Advanced Micro vs. Verizon Communications | Advanced Micro vs. Clover Health Investments, |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |