Correlation Between Sequans Communications and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both Sequans Communications 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 Sequans Communications and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sequans Communications SA and Advanced Micro Devices, you can compare the effects of market volatilities on Sequans Communications 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 Sequans Communications with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sequans Communications and Advanced Micro.
Diversification Opportunities for Sequans Communications and Advanced Micro
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sequans and Advanced is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sequans Communications SA 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 Sequans Communications 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 Sequans Communications SA 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 Sequans Communications i.e., Sequans Communications and Advanced Micro go up and down completely randomly.
Pair Corralation between Sequans Communications and Advanced Micro
Given the investment horizon of 90 days Sequans Communications SA is expected to under-perform the Advanced Micro. In addition to that, Sequans Communications is 5.22 times more volatile than Advanced Micro Devices. It trades about -0.03 of its total potential returns per unit of risk. Advanced Micro Devices is currently generating about 0.2 per unit of volatility. If you would invest 11,569 in Advanced Micro Devices on June 5, 2025 and sell it today you would earn a total of 4,643 from holding Advanced Micro Devices or generate 40.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sequans Communications SA vs. Advanced Micro Devices
Performance |
| Timeline |
| Sequans Communications |
| Advanced Micro Devices |
Sequans Communications and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sequans Communications and Advanced Micro
The main advantage of trading using opposite Sequans Communications and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sequans Communications 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.| Sequans Communications vs. QuickLogic | Sequans Communications vs. Power Integrations | Sequans Communications vs. Silicon Laboratories | Sequans Communications vs. FormFactor |
| Advanced Micro vs. Taiwan Semiconductor Manufacturing | Advanced Micro vs. Intel | Advanced Micro vs. Marvell Technology Group | Advanced Micro vs. Micron Technology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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