Correlation Between Advanced Micro and Infinite Technology

Can any of the company-specific risk be diversified away by investing in both Advanced Micro and Infinite Technology 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 Infinite Technology 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 Infinite Technology Corp, you can compare the effects of market volatilities on Advanced Micro and Infinite Technology 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 Infinite Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Micro and Infinite Technology.

Diversification Opportunities for Advanced Micro and Infinite Technology

0.0

Correlation Coefficient

Advanced Micro  Infinite Technology

Pay attention - limited upside

The 3 months correlation between Advanced and Infinite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Infinite Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinite Technology Corp 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 Infinite Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinite Technology Corp has no effect on the direction of Advanced Micro i.e., Advanced Micro and Infinite Technology go up and down completely randomly.

Pair Corralation between Advanced Micro and Infinite Technology

If you would invest  0.00  in Infinite Technology Corp on September 28, 2024 and sell it today you would earn a total of  0.00  from holding Infinite Technology Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Advanced Micro Devices  vs.  Infinite Technology Corp

Advanced Micro Devices

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Advanced Micro Devices has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Infinite Technology Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Infinite Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady fundamental indicators, Infinite Technology is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Advanced Micro and Infinite Technology

The main advantage of trading using opposite Advanced Micro and Infinite Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro position performs unexpectedly, Infinite Technology 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 Infinite Technology will offset losses from the drop in Infinite Technology's long position.

The idea behind Advanced Micro Devices and Infinite Technology Corp 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.