Correlation Between Harvest Global and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both Harvest Global 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 Harvest Global and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvest Global REIT and Advanced Micro Devices, you can compare the effects of market volatilities on Harvest Global 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 Harvest Global with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Global and Advanced Micro.
Diversification Opportunities for Harvest Global and Advanced Micro
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Harvest and Advanced is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Global REIT 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 Harvest Global 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 Harvest Global REIT 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 Harvest Global i.e., Harvest Global and Advanced Micro go up and down completely randomly.
Pair Corralation between Harvest Global and Advanced Micro
Assuming the 90 days trading horizon Harvest Global is expected to generate 5.89 times less return on investment than Advanced Micro. But when comparing it to its historical volatility, Harvest Global REIT is 2.95 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 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,409 in Advanced Micro Devices on September 3, 2024 and sell it today you would earn a total of 1,199 from holding Advanced Micro Devices or generate 85.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Global REIT vs. Advanced Micro Devices
Performance |
| Timeline |
| Harvest Global REIT |
| Advanced Micro Devices |
Harvest Global and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Global and Advanced Micro
The main advantage of trading using opposite Harvest Global and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Global 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.| Harvest Global vs. Harvest Equal Weight | Harvest Global vs. Harvest Brand Leaders | Harvest Global vs. Energy Leaders Plus | Harvest Global vs. Harvest Tech Achievers |
| Advanced Micro vs. Enghouse Systems | Advanced Micro vs. Pulse Seismic | Advanced Micro vs. Harvest Global REIT | Advanced Micro vs. International Zeolite Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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