Correlation Between Belo Sun and Advanced Micro

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Can any of the company-specific risk be diversified away by investing in both Belo Sun and Advanced Micro 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 Belo Sun and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belo Sun Mining and Advanced Micro Devices, you can compare the effects of market volatilities on Belo Sun and Advanced Micro 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 Belo Sun with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belo Sun and Advanced Micro.

Diversification Opportunities for Belo Sun and Advanced Micro

0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Belo and Advanced is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Belo Sun Mining and Advanced Micro Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Devices and Belo Sun 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 Belo Sun Mining are associated (or correlated) with Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Devices has no effect on the direction of Belo Sun i.e., Belo Sun and Advanced Micro go up and down completely randomly.

Pair Corralation between Belo Sun and Advanced Micro

Assuming the 90 days trading horizon Belo Sun Mining is expected to generate 0.88 times more return on investment than Advanced Micro. However, Belo Sun Mining is 1.14 times less risky than Advanced Micro. It trades about 0.14 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about 0.09 per unit of risk. If you would invest  26.00  in Belo Sun Mining on August 27, 2025 and sell it today you would earn a total of  10.00  from holding Belo Sun Mining or generate 38.46% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Belo Sun Mining  vs.  Advanced Micro Devices

 Performance 
       Timeline  
Belo Sun Mining 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Belo Sun Mining are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Belo Sun displayed solid returns over the last few months and may actually be approaching a breakup point.
Advanced Micro Devices 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Micro Devices are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Advanced Micro displayed solid returns over the last few months and may actually be approaching a breakup point.

Belo Sun and Advanced Micro Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Belo Sun and Advanced Micro

The main advantage of trading using opposite Belo Sun and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belo Sun position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.
The idea behind Belo Sun Mining and Advanced Micro Devices pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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