Correlation Between Advanced Micro and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Corning Incorporated 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 Corning Incorporated 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 Corning Incorporated, you can compare the effects of market volatilities on Advanced Micro and Corning Incorporated 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 Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Corning Incorporated.
Diversification Opportunities for Advanced Micro and Corning Incorporated
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advanced and Corning is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated 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 Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of Advanced Micro i.e., Advanced Micro and Corning Incorporated go up and down completely randomly.
Pair Corralation between Advanced Micro and Corning Incorporated
Assuming the 90 days trading horizon Advanced Micro Devices is expected to generate 1.6 times more return on investment than Corning Incorporated. However, Advanced Micro is 1.6 times more volatile than Corning Incorporated. It trades about 0.2 of its potential returns per unit of risk. Corning Incorporated is currently generating about -0.02 per unit of risk. If you would invest 4,048 in Advanced Micro Devices on August 15, 2025 and sell it today you would earn a total of 736.00 from holding Advanced Micro Devices or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Micro Devices vs. Corning Incorporated
Performance |
| Timeline |
| Advanced Micro Devices |
| Corning Incorporated |
Advanced Micro and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Corning Incorporated
The main advantage of trading using opposite Advanced Micro and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.| Advanced Micro vs. CubicFarm Systems Corp | Advanced Micro vs. Mako Mining Corp | Advanced Micro vs. Perseus Mining | Advanced Micro vs. Rogers Communications |
| Corning Incorporated vs. TE Connectivity | Corning Incorporated vs. MicroStrategy Incorporated | Corning Incorporated vs. Synopsys | Corning Incorporated vs. Motorola Solutions |
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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