Correlation Between Advanced Micro and KGL Resources

Can any of the company-specific risk be diversified away by investing in both Advanced Micro and KGL Resources 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 KGL Resources 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 KGL Resources, you can compare the effects of market volatilities on Advanced Micro and KGL Resources 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 KGL Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and KGL Resources.

Diversification Opportunities for Advanced Micro and KGL Resources

-0.42

Correlation Coefficient

Advanced Micro  KGL Resources

Very good diversification

The 3 months correlation between Advanced and KGL is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and KGL Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KGL Resources 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 KGL Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KGL Resources has no effect on the direction of Advanced Micro i.e., Advanced Micro and KGL Resources go up and down completely randomly.

Pair Corralation between Advanced Micro and KGL Resources

Assuming the 90 days trading horizon Advanced Micro Devices is expected to generate 2.31 times more return on investment than KGL Resources. However, Advanced Micro is 2.31 times more volatile than KGL Resources. It trades about 0.11 of its potential returns per unit of risk. KGL Resources is currently generating about -0.13 per unit of risk. If you would invest  3,109  in Advanced Micro Devices on August 27, 2025 and sell it today you would earn a total of  866.00  from holding Advanced Micro Devices or generate 27.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

Advanced Micro Devices  vs.  KGL Resources

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 8 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal fundamental indicators, Advanced Micro displayed solid returns over the last few months and may actually be approaching a breakup point.

KGL Resources

Risk-Adjusted Performance

Weakest

Over the last 90 days KGL Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's primary indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Advanced Micro and KGL Resources

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

The idea behind Advanced Micro Devices and KGL Resources 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.