Correlation Between EMCORE and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both EMCORE 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 EMCORE and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMCORE and Advanced Micro Devices, you can compare the effects of market volatilities on EMCORE 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 EMCORE with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMCORE and Advanced Micro.
Diversification Opportunities for EMCORE and Advanced Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EMCORE and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EMCORE 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 EMCORE 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 EMCORE 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 EMCORE i.e., EMCORE and Advanced Micro go up and down completely randomly.
Pair Corralation between EMCORE and Advanced Micro
If you would invest 8,750 in Advanced Micro Devices on April 17, 2025 and sell it today you would earn a total of 6,811 from holding Advanced Micro Devices or generate 77.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
EMCORE vs. Advanced Micro Devices
Performance |
| Timeline |
| EMCORE |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Advanced Micro Devices |
EMCORE and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMCORE and Advanced Micro
The main advantage of trading using opposite EMCORE and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMCORE 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 EMCORE 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.| 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 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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