Correlation Between Advanced Micro and Stratus Properties
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Stratus Properties 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 Stratus Properties 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 Stratus Properties, you can compare the effects of market volatilities on Advanced Micro and Stratus Properties 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 Stratus Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Stratus Properties.
Diversification Opportunities for Advanced Micro and Stratus Properties
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and Stratus is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Stratus Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratus Properties 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 Stratus Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratus Properties has no effect on the direction of Advanced Micro i.e., Advanced Micro and Stratus Properties go up and down completely randomly.
Pair Corralation between Advanced Micro and Stratus Properties
Assuming the 90 days trading horizon Advanced Micro Devices is expected to generate 1.1 times more return on investment than Stratus Properties. However, Advanced Micro is 1.1 times more volatile than Stratus Properties. It trades about 0.1 of its potential returns per unit of risk. Stratus Properties is currently generating about 0.01 per unit of risk. If you would invest 2,114 in Advanced Micro Devices on August 31, 2025 and sell it today you would earn a total of 1,900 from holding Advanced Micro Devices or generate 89.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 41.7% |
| Values | Daily Returns |
Advanced Micro Devices vs. Stratus Properties
Performance |
| Timeline |
| Advanced Micro Devices |
| Stratus Properties |
Advanced Micro and Stratus Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and Stratus Properties
The main advantage of trading using opposite Advanced Micro and Stratus Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Stratus Properties 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 Stratus Properties will offset losses from the drop in Stratus Properties' long position.| Advanced Micro vs. Omineca Mining and | Advanced Micro vs. Ramp Metals | Advanced Micro vs. Metalero Mining Corp | Advanced Micro vs. Altair Resources |
| Stratus Properties vs. TAL Education Group | Stratus Properties vs. Perfect Medical Health | Stratus Properties vs. Greentown Management Holdings | Stratus Properties vs. Strategic Education |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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