Correlation Between Advanced Micro and Lsv Small

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

Diversification Opportunities for Advanced Micro and Lsv Small

-0.44

Correlation Coefficient

Advanced Micro  Lsv Small

Very good diversification

The 3 months correlation between Advanced and Lsv is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Lsv Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lsv Small Cap 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 Lsv Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lsv Small Cap has no effect on the direction of Advanced Micro i.e., Advanced Micro and Lsv Small go up and down completely randomly.

Pair Corralation between Advanced Micro and Lsv Small

Assuming the 90 days trading horizon Advanced Micro is expected to generate 22.24 times less return on investment than Lsv Small. In addition to that, Advanced Micro is 2.74 times more volatile than Lsv Small Cap. It trades about 0.0 of its total potential returns per unit of risk. Lsv Small Cap is currently generating about 0.17 per unit of volatility. If you would invest  1,662  in Lsv Small Cap on October 10, 2025 and sell it today you would earn a total of  222.00  from holding Lsv Small Cap or generate 13.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Advanced Micro Devices  vs.  Lsv Small Cap

Advanced Micro Devices

Risk-Adjusted Performance

Weakest

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 very healthy fundamental indicators, Advanced Micro is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Lsv Small Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lsv Small Cap are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Lsv Small showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Micro and Lsv Small

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

The idea behind Advanced Micro Devices and Lsv Small Cap 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.