Correlation Between TSOGO SUN and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and Advanced Micro Devices, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Advanced Micro.
Diversification Opportunities for TSOGO SUN and Advanced Micro
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TSOGO and Advanced is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING 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 TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and Advanced Micro go up and down completely randomly.
Pair Corralation between TSOGO SUN and Advanced Micro
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 0.69 times more return on investment than Advanced Micro. However, TSOGO SUN GAMING is 1.46 times less risky than Advanced Micro. It trades about 0.03 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about -0.03 per unit of risk. If you would invest 51.00 in TSOGO SUN GAMING on September 3, 2024 and sell it today you would earn a total of 3.00 from holding TSOGO SUN GAMING or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Advanced Micro Devices
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Advanced Micro Devices |
TSOGO SUN and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Advanced Micro
The main advantage of trading using opposite TSOGO SUN and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.| TSOGO SUN vs. Las Vegas Sands | TSOGO SUN vs. ENTAIN PLC UNSPADR1 | TSOGO SUN vs. GENTING SG LTD | TSOGO SUN vs. Boyd Gaming |
| Advanced Micro vs. Tencent Music Entertainment | Advanced Micro vs. CI GAMES SA | Advanced Micro vs. TSOGO SUN GAMING | Advanced Micro vs. PARKEN Sport Entertainment |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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