Correlation Between Pan International and Nan Ya
Can any of the company-specific risk be diversified away by investing in both Pan International and Nan Ya 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 Pan International and Nan Ya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pan International Industrial Corp and Nan Ya Printed, you can compare the effects of market volatilities on Pan International and Nan Ya 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 Pan International with a short position of Nan Ya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan International and Nan Ya.
Diversification Opportunities for Pan International and Nan Ya
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pan and Nan is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pan International Industrial C and Nan Ya Printed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nan Ya Printed and Pan International 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 Pan International Industrial Corp are associated (or correlated) with Nan Ya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nan Ya Printed has no effect on the direction of Pan International i.e., Pan International and Nan Ya go up and down completely randomly.
Pair Corralation between Pan International and Nan Ya
Assuming the 90 days trading horizon Pan International Industrial Corp is expected to generate 1.03 times more return on investment than Nan Ya. However, Pan International is 1.03 times more volatile than Nan Ya Printed. It trades about -0.17 of its potential returns per unit of risk. Nan Ya Printed is currently generating about -0.3 per unit of risk. If you would invest 3,985 in Pan International Industrial Corp on September 12, 2024 and sell it today you would lose (310.00) from holding Pan International Industrial Corp or give up 7.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pan International Industrial C vs. Nan Ya Printed
Performance |
| Timeline |
| Pan International |
| Nan Ya Printed |
Pan International and Nan Ya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan International and Nan Ya
The main advantage of trading using opposite Pan International and Nan Ya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan International position performs unexpectedly, Nan Ya 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 Nan Ya will offset losses from the drop in Nan Ya's long position.| Pan International vs. Hunya Foods Co | Pan International vs. Hi Lai Foods Co | Pan International vs. Sunspring Metal Corp | Pan International vs. Lian Hwa Foods |
| Nan Ya vs. AU Optronics | Nan Ya vs. Innolux Corp | Nan Ya vs. Ruentex Development Co | Nan Ya vs. WiseChip Semiconductor |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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