Correlation Between Advanced Micro and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Small, you can compare the effects of market volatilities on Advanced Micro and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Goldman Sachs.
Diversification Opportunities for Advanced Micro and Goldman Sachs
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advanced and Goldman is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Goldman Sachs Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Small 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Small has no effect on the direction of Advanced Micro i.e., Advanced Micro and Goldman Sachs go up and down completely randomly.
Pair Corralation between Advanced Micro and Goldman Sachs
Assuming the 90 days trading horizon Advanced Micro Devices is expected to generate 3.91 times more return on investment than Goldman Sachs. However, Advanced Micro is 3.91 times more volatile than Goldman Sachs Small. It trades about 0.09 of its potential returns per unit of risk. Goldman Sachs Small is currently generating about -0.01 per unit of risk. If you would invest 3,041 in Advanced Micro Devices on August 23, 2025 and sell it today you would earn a total of 718.00 from holding Advanced Micro Devices or generate 23.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Advanced Micro Devices vs. Goldman Sachs Small
Performance |
| Timeline |
| Advanced Micro Devices |
| Goldman Sachs Small |
Advanced Micro and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Goldman Sachs
The main advantage of trading using opposite Advanced Micro and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Advanced Micro vs. Information Services | Advanced Micro vs. Diversified Royalty Corp | Advanced Micro vs. Plantify Foods | Advanced Micro vs. Diamond Estates Wines |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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