Correlation Between Chung Fu and Nanya Technology
Can any of the company-specific risk be diversified away by investing in both Chung Fu and Nanya 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 Chung Fu and Nanya Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chung Fu Tex International and Nanya Technology Corp, you can compare the effects of market volatilities on Chung Fu and Nanya 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 Chung Fu with a short position of Nanya Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chung Fu and Nanya Technology.
Diversification Opportunities for Chung Fu and Nanya Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chung and Nanya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chung Fu Tex International and Nanya Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanya Technology Corp and Chung Fu 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 Chung Fu Tex International are associated (or correlated) with Nanya Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanya Technology Corp has no effect on the direction of Chung Fu i.e., Chung Fu and Nanya Technology go up and down completely randomly.
Pair Corralation between Chung Fu and Nanya Technology
If you would invest 0.00 in Chung Fu Tex International on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Chung Fu Tex International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Chung Fu Tex International vs. Nanya Technology Corp
Performance |
| Timeline |
| Chung Fu Tex |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nanya Technology Corp |
Chung Fu and Nanya Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chung Fu and Nanya Technology
The main advantage of trading using opposite Chung Fu and Nanya Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chung Fu position performs unexpectedly, Nanya 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 Nanya Technology will offset losses from the drop in Nanya Technology's long position.| Chung Fu vs. Arima Communications Corp | Chung Fu vs. Integrated Service Technology | Chung Fu vs. Microtips Technology | Chung Fu vs. Ichia Technologies |
| Nanya Technology vs. Winbond Electronics Corp | Nanya Technology vs. AU Optronics | Nanya Technology vs. Macronix International Co | Nanya Technology vs. United Microelectronics |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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