Correlation Between OBI Pharma and Nanya Technology
Can any of the company-specific risk be diversified away by investing in both OBI Pharma 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 OBI Pharma and Nanya Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OBI Pharma and Nanya Technology Corp, you can compare the effects of market volatilities on OBI Pharma 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 OBI Pharma with a short position of Nanya Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of OBI Pharma and Nanya Technology.
Diversification Opportunities for OBI Pharma and Nanya Technology
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OBI and Nanya is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding OBI Pharma 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 OBI Pharma 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 OBI Pharma 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 OBI Pharma i.e., OBI Pharma and Nanya Technology go up and down completely randomly.
Pair Corralation between OBI Pharma and Nanya Technology
Assuming the 90 days trading horizon OBI Pharma is expected to generate 0.7 times more return on investment than Nanya Technology. However, OBI Pharma is 1.44 times less risky than Nanya Technology. It trades about -0.12 of its potential returns per unit of risk. Nanya Technology Corp is currently generating about -0.54 per unit of risk. If you would invest 6,580 in OBI Pharma on September 1, 2024 and sell it today you would lose (240.00) from holding OBI Pharma or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OBI Pharma vs. Nanya Technology Corp
Performance |
| Timeline |
| OBI Pharma |
| Nanya Technology Corp |
OBI Pharma and Nanya Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OBI Pharma and Nanya Technology
The main advantage of trading using opposite OBI Pharma and Nanya Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OBI Pharma 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.| OBI Pharma vs. TaiMed Biologics | OBI Pharma vs. PharmaEngine | OBI Pharma vs. Medigen Biotechnology | OBI Pharma vs. TTY Biopharm Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |