Correlation Between 04316JAD1 and Advanced Micro
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By analyzing existing cross correlation between AJG 55 02 MAR 33 and Advanced Micro Devices, you can compare the effects of market volatilities on 04316JAD1 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 04316JAD1 with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of 04316JAD1 and Advanced Micro.
Diversification Opportunities for 04316JAD1 and Advanced Micro
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 04316JAD1 and Advanced is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding AJG 55 02 MAR 33 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 04316JAD1 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 AJG 55 02 MAR 33 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 04316JAD1 i.e., 04316JAD1 and Advanced Micro go up and down completely randomly.
Pair Corralation between 04316JAD1 and Advanced Micro
Assuming the 90 days trading horizon AJG 55 02 MAR 33 is expected to generate 0.45 times more return on investment than Advanced Micro. However, AJG 55 02 MAR 33 is 2.22 times less risky than Advanced Micro. It trades about -0.07 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about -0.12 per unit of risk. If you would invest 10,237 in AJG 55 02 MAR 33 on September 1, 2024 and sell it today you would lose (110.00) from holding AJG 55 02 MAR 33 or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
AJG 55 02 MAR 33 vs. Advanced Micro Devices
Performance |
| Timeline |
| AJG 55 02 |
| Advanced Micro Devices |
04316JAD1 and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 04316JAD1 and Advanced Micro
The main advantage of trading using opposite 04316JAD1 and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 04316JAD1 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.| 04316JAD1 vs. ATT Inc | 04316JAD1 vs. Home Depot | 04316JAD1 vs. Cisco Systems | 04316JAD1 vs. Dupont De Nemours |
| Advanced Micro vs. Taiwan Semiconductor Manufacturing | Advanced Micro vs. Intel | Advanced Micro vs. Marvell Technology Group | Advanced Micro vs. Micron Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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