Correlation Between X FAB and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both X FAB 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 X FAB and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X FAB Silicon Foundries and Advanced Micro Devices, you can compare the effects of market volatilities on X FAB 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 X FAB with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Advanced Micro.
Diversification Opportunities for X FAB and Advanced Micro
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XFB and Advanced is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries 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 X FAB 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 X FAB Silicon Foundries 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 X FAB i.e., X FAB and Advanced Micro go up and down completely randomly.
Pair Corralation between X FAB and Advanced Micro
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to generate 0.91 times more return on investment than Advanced Micro. However, X FAB Silicon Foundries is 1.09 times less risky than Advanced Micro. It trades about -0.22 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about -0.21 per unit of risk. If you would invest 529.00 in X FAB Silicon Foundries on November 8, 2024 and sell it today you would lose (72.00) from holding X FAB Silicon Foundries or give up 13.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Advanced Micro Devices
Performance |
| Timeline |
| X FAB Silicon |
| Advanced Micro Devices |
X FAB and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Advanced Micro
The main advantage of trading using opposite X FAB and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB 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.| X FAB vs. Soken Chemical Engineering | X FAB vs. United Insurance Holdings | X FAB vs. TIANDE CHEMICAL | X FAB vs. Discover Financial Services |
| Advanced Micro vs. T Mobile | Advanced Micro vs. Coeur Mining | Advanced Micro vs. MAGNUM MINING EXP | Advanced Micro vs. GALENA MINING LTD |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |