Correlation Between Chicony Electronics and Nanya Technology
Can any of the company-specific risk be diversified away by investing in both Chicony Electronics 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 Chicony Electronics and Nanya Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicony Electronics Co and Nanya Technology Corp, you can compare the effects of market volatilities on Chicony Electronics 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 Chicony Electronics with a short position of Nanya Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicony Electronics and Nanya Technology.
Diversification Opportunities for Chicony Electronics and Nanya Technology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chicony and Nanya is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Chicony Electronics Co 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 Chicony Electronics 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 Chicony Electronics Co 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 Chicony Electronics i.e., Chicony Electronics and Nanya Technology go up and down completely randomly.
Pair Corralation between Chicony Electronics and Nanya Technology
Assuming the 90 days trading horizon Chicony Electronics Co is expected to generate 1.02 times more return on investment than Nanya Technology. However, Chicony Electronics is 1.02 times more volatile than Nanya Technology Corp. It trades about -0.12 of its potential returns per unit of risk. Nanya Technology Corp is currently generating about -0.42 per unit of risk. If you would invest 16,200 in Chicony Electronics Co on August 25, 2024 and sell it today you would lose (900.00) from holding Chicony Electronics Co or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chicony Electronics Co vs. Nanya Technology Corp
Performance |
| Timeline |
| Chicony Electronics |
| Nanya Technology Corp |
Chicony Electronics and Nanya Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicony Electronics and Nanya Technology
The main advantage of trading using opposite Chicony Electronics and Nanya Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicony Electronics 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.| Chicony Electronics vs. Novatek Microelectronics Corp | Chicony Electronics vs. Quanta Computer | Chicony Electronics vs. United Microelectronics |
| Nanya Technology vs. Novatek Microelectronics Corp | Nanya Technology vs. Quanta Computer | 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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