Correlation Between Advanced Micro and Global X
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Global X 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 Global X 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 Global X Infrastructure, you can compare the effects of market volatilities on Advanced Micro and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Global X.
Diversification Opportunities for Advanced Micro and Global X
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advanced and Global is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Global X Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Infrastructure 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Infrastructure has no effect on the direction of Advanced Micro i.e., Advanced Micro and Global X go up and down completely randomly.
Pair Corralation between Advanced Micro and Global X
Assuming the 90 days trading horizon Advanced Micro Devices is expected to generate 4.52 times more return on investment than Global X. However, Advanced Micro is 4.52 times more volatile than Global X Infrastructure. It trades about 0.12 of its potential returns per unit of risk. Global X Infrastructure is currently generating about 0.08 per unit of risk. If you would invest 3,017 in Advanced Micro Devices on August 31, 2025 and sell it today you would earn a total of 997.00 from holding Advanced Micro Devices or generate 33.05% 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. Global X Infrastructure
Performance |
| Timeline |
| Advanced Micro Devices |
| Global X Infrastructure |
Advanced Micro and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Global X
The main advantage of trading using opposite Advanced Micro and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Advanced Micro vs. Omineca Mining and | Advanced Micro vs. Ramp Metals | Advanced Micro vs. Metalero Mining Corp | Advanced Micro vs. Altair Resources |
| Global X vs. First Trust Indxx | Global X vs. Direxion Daily Industrials | Global X vs. Themes Transatlantic Defense | Global X vs. FlexShares STOXX Global |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |