Correlation Between Advanced Micro and Canna Consumer
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Canna Consumer 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 Canna Consumer 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 Canna Consumer Goods, you can compare the effects of market volatilities on Advanced Micro and Canna Consumer 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 Canna Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Canna Consumer.
Diversification Opportunities for Advanced Micro and Canna Consumer
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advanced and Canna is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Canna Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canna Consumer Goods 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 Canna Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canna Consumer Goods has no effect on the direction of Advanced Micro i.e., Advanced Micro and Canna Consumer go up and down completely randomly.
Pair Corralation between Advanced Micro and Canna Consumer
Assuming the 90 days trading horizon Advanced Micro Devices is expected to generate 0.49 times more return on investment than Canna Consumer. However, Advanced Micro Devices is 2.05 times less risky than Canna Consumer. It trades about 0.14 of its potential returns per unit of risk. Canna Consumer Goods is currently generating about -0.2 per unit of risk. If you would invest 3,276 in Advanced Micro Devices on August 17, 2025 and sell it today you would earn a total of 1,289 from holding Advanced Micro Devices or generate 39.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Devices vs. Canna Consumer Goods
Performance |
| Timeline |
| Advanced Micro Devices |
| Canna Consumer Goods |
Advanced Micro and Canna Consumer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Canna Consumer
The main advantage of trading using opposite Advanced Micro and Canna Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Canna Consumer 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 Canna Consumer will offset losses from the drop in Canna Consumer's long position.| Advanced Micro vs. Waste Management, | Advanced Micro vs. WonderFi Technologies | Advanced Micro vs. Diversified Royalty Corp | Advanced Micro vs. Element Fleet Management |
| Canna Consumer vs. Wildpack Beverage | Canna Consumer vs. Critical Solutions | Canna Consumer vs. Starstream Entmt | Canna Consumer vs. CirTran |
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.
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