Correlation Between Advanced Micro and Forte Biosciences

Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Forte Biosciences 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 Advanced Micro and Forte Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advanced Micro Devices and Forte Biosciences, you can compare the effects of market volatilities on Advanced Micro and Forte Biosciences 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 Forte Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Forte Biosciences.

Diversification Opportunities for Advanced Micro and Forte Biosciences

0.17

Correlation Coefficient

Advanced Micro  Forte Biosciences

Average diversification

The 3 months correlation between Advanced and Forte is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Forte Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forte Biosciences 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 Forte Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forte Biosciences has no effect on the direction of Advanced Micro i.e., Advanced Micro and Forte Biosciences go up and down completely randomly.

Pair Corralation between Advanced Micro and Forte Biosciences

Assuming the 90 days trading horizon Advanced Micro is expected to generate 1.13 times less return on investment than Forte Biosciences. But when comparing it to its historical volatility, Advanced Micro Devices is 1.28 times less risky than Forte Biosciences. It trades about 0.13 of its potential returns per unit of risk. Forte Biosciences is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,479  in Forte Biosciences on August 23, 2025 and sell it today you would earn a total of  436.00  from holding Forte Biosciences or generate 29.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.78%
Values	Daily Returns

Advanced Micro Devices  vs.  Forte Biosciences

Advanced Micro Devices

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Micro Devices are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Advanced Micro displayed solid returns over the last few months and may actually be approaching a breakup point.

Forte Biosciences

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Forte Biosciences are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Forte Biosciences showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Micro and Forte Biosciences

The main advantage of trading using opposite Advanced Micro and Forte Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Forte Biosciences 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 Forte Biosciences will offset losses from the drop in Forte Biosciences' long position.

The idea behind Advanced Micro Devices and Forte Biosciences 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.