Correlation Between Advanced Micro and One Stop

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

Diversification Opportunities for Advanced Micro and One Stop

0.93

Correlation Coefficient

Advanced Micro  One Stop

Almost no diversification

The 3 months correlation between Advanced and One is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and One Stop Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Stop Systems 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 One Stop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Stop Systems has no effect on the direction of Advanced Micro i.e., Advanced Micro and One Stop go up and down completely randomly.

Pair Corralation between Advanced Micro and One Stop

Considering the 90-day investment horizon Advanced Micro is expected to generate 1.69 times less return on investment than One Stop. But when comparing it to its historical volatility, Advanced Micro Devices is 2.26 times less risky than One Stop. It trades about 0.36 of its potential returns per unit of risk. One Stop Systems is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  222.00  in One Stop Systems on April 28, 2025 and sell it today you would earn a total of  300.00  from holding One Stop Systems or generate 135.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Advanced Micro Devices  vs.  One Stop Systems

Advanced Micro Devices

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Micro Devices are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting primary indicators, Advanced Micro exhibited solid returns over the last few months and may actually be approaching a breakup point.

One Stop Systems

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in One Stop Systems are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, One Stop unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Micro and One Stop

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

The idea behind Advanced Micro Devices and One Stop Systems 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..