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Correlation Between Advanced Micro and DOW

Analyzing existing cross correlation between Advanced Micro Devices and DOW. You can compare the effects of market volatilities on Advanced Micro and DOW 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 Advanced Micro with a short position of DOW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and DOW.
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Comparative Performance

 Predicted Return Density 
    
  Returns 

Advanced Micro Devices Inc  vs.  DOW

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Advanced Micro Devices is expected to generate 2.99 times more return on investment than DOW. However, Advanced Micro is 2.99 times more volatile than DOW. It trades about 0.23 of its potential returns per unit of risk. DOW is currently generating about 0.1 per unit of risk. If you would invest  3,988  in Advanced Micro Devices on January 17, 2020 and sell it today you would earn a total of  1,543  from holding Advanced Micro Devices or generate 38.69% return on investment over 30 days.

Pair Corralation between Advanced Micro and DOW

0.93
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Advanced Micro and DOW

Advanced Micro Devices Inc diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices Inc and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Advanced Micro 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 Advanced Micro Devices are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Advanced Micro i.e. Advanced Micro and DOW go up and down completely randomly.
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Check out your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.