Correlation Between J Long and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both J Long 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 J Long and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Long Group Limited and Advanced Micro Devices, you can compare the effects of market volatilities on J Long 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 J Long with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Long and Advanced Micro.
Diversification Opportunities for J Long and Advanced Micro
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between J Long and Advanced is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding J Long Group Limited 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 J Long 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 J Long Group Limited 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 J Long i.e., J Long and Advanced Micro go up and down completely randomly.
Pair Corralation between J Long and Advanced Micro
Allowing for the 90-day total investment horizon J Long Group Limited is expected to generate 3.22 times more return on investment than Advanced Micro. However, J Long is 3.22 times more volatile than Advanced Micro Devices. It trades about -0.01 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about -0.04 per unit of risk. If you would invest 592.00 in J Long Group Limited on September 12, 2024 and sell it today you would lose (279.00) from holding J Long Group Limited or give up 47.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
J Long Group Limited vs. Advanced Micro Devices
Performance |
| Timeline |
| J Long Group |
| Advanced Micro Devices |
J Long and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Long and Advanced Micro
The main advantage of trading using opposite J Long and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Long 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.| J Long vs. Ermenegildo Zegna NV | J Long vs. Columbia Sportswear | J Long vs. Gildan Activewear | J Long vs. G III Apparel Group |
| Advanced Micro vs. NVIDIA | Advanced Micro vs. Taiwan Semiconductor Manufacturing | Advanced Micro vs. Micron Technology | Advanced Micro vs. Qualcomm Incorporated |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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