Correlation Between Advantech and Nak Sealing
Can any of the company-specific risk be diversified away by investing in both Advantech and Nak Sealing 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 Advantech and Nak Sealing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantech Co and Nak Sealing Technologies, you can compare the effects of market volatilities on Advantech and Nak Sealing 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 Advantech with a short position of Nak Sealing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantech and Nak Sealing.
Diversification Opportunities for Advantech and Nak Sealing
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advantech and Nak is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Advantech Co and Nak Sealing Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nak Sealing Technologies and Advantech 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 Advantech Co are associated (or correlated) with Nak Sealing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nak Sealing Technologies has no effect on the direction of Advantech i.e., Advantech and Nak Sealing go up and down completely randomly.
Pair Corralation between Advantech and Nak Sealing
Assuming the 90 days trading horizon Advantech Co is expected to generate 1.48 times more return on investment than Nak Sealing. However, Advantech is 1.48 times more volatile than Nak Sealing Technologies. It trades about 0.15 of its potential returns per unit of risk. Nak Sealing Technologies is currently generating about 0.04 per unit of risk. If you would invest 32,000 in Advantech Co on September 1, 2024 and sell it today you would earn a total of 1,550 from holding Advantech Co or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantech Co vs. Nak Sealing Technologies
Performance |
| Timeline |
| Advantech |
| Nak Sealing Technologies |
Advantech and Nak Sealing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantech and Nak Sealing
The main advantage of trading using opposite Advantech and Nak Sealing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantech position performs unexpectedly, Nak Sealing 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 Nak Sealing will offset losses from the drop in Nak Sealing's long position.| Advantech vs. Delta Electronics | Advantech vs. Quanta Computer | Advantech vs. Realtek Semiconductor Corp | Advantech vs. President Chain Store |
| Nak Sealing vs. CHC Resources Corp | Nak Sealing vs. Taiwan Secom Co | Nak Sealing vs. Taiwan Shin Kong | Nak Sealing vs. Yulon Finance Corp |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |