Correlation Between Advanced Micro and FTC Solar
Can any of the company-specific risk be diversified away by investing in both Advanced Micro and FTC Solar 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 FTC Solar 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 FTC Solar, you can compare the effects of market volatilities on Advanced Micro and FTC Solar 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 FTC Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and FTC Solar.
Diversification Opportunities for Advanced Micro and FTC Solar
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advanced and FTC is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and FTC Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTC Solar 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 FTC Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTC Solar has no effect on the direction of Advanced Micro i.e., Advanced Micro and FTC Solar go up and down completely randomly.
Pair Corralation between Advanced Micro and FTC Solar
Considering the 90-day investment horizon Advanced Micro is expected to generate 1.26 times less return on investment than FTC Solar. But when comparing it to its historical volatility, Advanced Micro Devices is 1.96 times less risky than FTC Solar. It trades about 0.25 of its potential returns per unit of risk. FTC Solar is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 411.00 in FTC Solar on May 30, 2025 and sell it today you would earn a total of 235.00 from holding FTC Solar or generate 57.18% 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. FTC Solar
Performance |
| Timeline |
| Advanced Micro Devices |
| FTC Solar |
Advanced Micro and FTC Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Micro and FTC Solar
The main advantage of trading using opposite Advanced Micro and FTC Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, FTC Solar 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 FTC Solar will offset losses from the drop in FTC Solar's long position.| Advanced Micro vs. SolarEdge Technologies | Advanced Micro vs. First Solar | Advanced Micro vs. Sunrun Inc | Advanced Micro vs. Canadian Solar |
| FTC Solar vs. Maxeon Solar Technologies | FTC Solar vs. Nextracker Class A | FTC Solar vs. Shoals Technologies Group | FTC Solar vs. Array Technologies |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |