Correlation Between DSP and Advanced Micro

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both DSP 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 DSP and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSP Group and Advanced Micro Devices, you can compare the effects of market volatilities on DSP 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 DSP with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSP and Advanced Micro.

Diversification Opportunities for DSP and Advanced Micro

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between DSP and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DSP Group 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 DSP 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 DSP Group 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 DSP i.e., DSP and Advanced Micro go up and down completely randomly.

Pair Corralation between DSP and Advanced Micro

If you would invest  17,654  in Advanced Micro Devices on December 30, 2023 and sell it today you would earn a total of  395.00  from holding Advanced Micro Devices or generate 2.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

DSP Group  vs.  Advanced Micro Devices

 Performance 
       Timeline  
DSP Group 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days DSP Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, DSP is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Advanced Micro Devices 

Risk-Adjusted Performance

11 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Micro Devices are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent primary indicators, Advanced Micro exhibited solid returns over the last few months and may actually be approaching a breakup point.

DSP and Advanced Micro Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with DSP and Advanced Micro

The main advantage of trading using opposite DSP and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSP 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.
The idea behind DSP Group and Advanced Micro Devices pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
CEOs Directory
Screen CEOs from public companies around the world
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas