Correlation Between Advanced Micro and Deutsche California
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Deutsche California 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 Deutsche California 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 Deutsche California Tax Free, you can compare the effects of market volatilities on Advanced Micro and Deutsche California 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 Deutsche California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Deutsche California.
Diversification Opportunities for Advanced Micro and Deutsche California
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advanced and Deutsche is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Deutsche California Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche California Tax 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 Deutsche California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche California Tax has no effect on the direction of Advanced Micro i.e., Advanced Micro and Deutsche California go up and down completely randomly.
Pair Corralation between Advanced Micro and Deutsche California
Assuming the 90 days trading horizon Advanced Micro Devices is expected to generate 24.54 times more return on investment than Deutsche California. However, Advanced Micro is 24.54 times more volatile than Deutsche California Tax Free. It trades about 0.15 of its potential returns per unit of risk. Deutsche California Tax Free is currently generating about 0.41 per unit of risk. If you would invest 3,095 in Advanced Micro Devices on August 19, 2025 and sell it today you would earn a total of 1,346 from holding Advanced Micro Devices or generate 43.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Advanced Micro Devices vs. Deutsche California Tax Free
Performance |
| Timeline |
| Advanced Micro Devices |
| Deutsche California Tax |
Risk-Adjusted Performance
High
Weak | Strong |
Advanced Micro and Deutsche California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Deutsche California
The main advantage of trading using opposite Advanced Micro and Deutsche California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Deutsche California 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 Deutsche California will offset losses from the drop in Deutsche California's long position.| Advanced Micro vs. BLUERUSH Media Group | Advanced Micro vs. Canadian Utilities Limited | Advanced Micro vs. Postmedia Network Canada | Advanced Micro vs. Perseus Mining |
| Deutsche California vs. Siit Large Cap | Deutsche California vs. Dreyfusstandish Global Fixed | Deutsche California vs. Ab Global Bond | Deutsche California vs. Growth Allocation Fund |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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