Correlation Between Postmedia Network and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both Postmedia Network 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 Postmedia Network and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postmedia Network Canada and Advanced Micro Devices, you can compare the effects of market volatilities on Postmedia Network 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 Postmedia Network with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postmedia Network and Advanced Micro.
Diversification Opportunities for Postmedia Network and Advanced Micro
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Postmedia and Advanced is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Postmedia Network Canada 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 Postmedia Network 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 Postmedia Network Canada 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 Postmedia Network i.e., Postmedia Network and Advanced Micro go up and down completely randomly.
Pair Corralation between Postmedia Network and Advanced Micro
Assuming the 90 days trading horizon Postmedia Network Canada is expected to under-perform the Advanced Micro. But the stock apears to be less risky and, when comparing its historical volatility, Postmedia Network Canada is 1.88 times less risky than Advanced Micro. The stock trades about -0.25 of its potential returns per unit of risk. The Advanced Micro Devices is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,109 in Advanced Micro Devices on August 27, 2025 and sell it today you would earn a total of 866.00 from holding Advanced Micro Devices or generate 27.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Postmedia Network Canada vs. Advanced Micro Devices
Performance |
| Timeline |
| Postmedia Network Canada |
| Advanced Micro Devices |
Postmedia Network and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postmedia Network and Advanced Micro
The main advantage of trading using opposite Postmedia Network and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postmedia Network 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.| Postmedia Network vs. BNP Paribas CDR | Postmedia Network vs. Toronto Dominion Bank | Postmedia Network vs. Berkshire Hathaway CDR | Postmedia Network vs. Toronto Dominion Bank Pref |
| Advanced Micro vs. Reliq Health Technologies | Advanced Micro vs. NeuPath Health | Advanced Micro vs. UnitedHealth Group CDR | Advanced Micro vs. Bausch Health Companies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |