Correlation Between Element Fleet and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both Element Fleet 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 Element Fleet and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Element Fleet Management and Advanced Micro Devices, you can compare the effects of market volatilities on Element Fleet 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 Element Fleet with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Element Fleet and Advanced Micro.
Diversification Opportunities for Element Fleet and Advanced Micro
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Element and Advanced is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Element Fleet Management 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 Element Fleet 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 Element Fleet Management 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 Element Fleet i.e., Element Fleet and Advanced Micro go up and down completely randomly.
Pair Corralation between Element Fleet and Advanced Micro
Assuming the 90 days trading horizon Element Fleet is expected to generate 4.0 times less return on investment than Advanced Micro. But when comparing it to its historical volatility, Element Fleet Management is 3.08 times less risky than Advanced Micro. It trades about 0.09 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,114 in Advanced Micro Devices on August 17, 2025 and sell it today you would earn a total of 2,451 from holding Advanced Micro Devices or generate 115.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 39.8% |
| Values | Daily Returns |
Element Fleet Management vs. Advanced Micro Devices
Performance |
| Timeline |
| Element Fleet Management |
| Advanced Micro Devices |
Element Fleet and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Element Fleet and Advanced Micro
The main advantage of trading using opposite Element Fleet and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Element Fleet 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.| Element Fleet vs. Toromont Industries | Element Fleet vs. AtkinsRealis Group | Element Fleet vs. CAE Inc | Element Fleet vs. Stantec |
| Advanced Micro vs. Waste Management, | Advanced Micro vs. WonderFi Technologies | Advanced Micro vs. Diversified Royalty Corp | Advanced Micro vs. Element Fleet Management |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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