Correlation Between Aspeed Technology and Nan Ya
Can any of the company-specific risk be diversified away by investing in both Aspeed Technology 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 Aspeed Technology and Nan Ya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspeed Technology and Nan Ya Printed, you can compare the effects of market volatilities on Aspeed Technology 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 Aspeed Technology with a short position of Nan Ya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspeed Technology and Nan Ya.
Diversification Opportunities for Aspeed Technology and Nan Ya
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aspeed and Nan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aspeed Technology 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 Aspeed Technology 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 Aspeed Technology 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 Aspeed Technology i.e., Aspeed Technology and Nan Ya go up and down completely randomly.
Pair Corralation between Aspeed Technology and Nan Ya
Assuming the 90 days trading horizon Aspeed Technology is expected to generate 1.47 times more return on investment than Nan Ya. However, Aspeed Technology is 1.47 times more volatile than Nan Ya Printed. It trades about 0.03 of its potential returns per unit of risk. Nan Ya Printed is currently generating about -0.15 per unit of risk. If you would invest 380,398 in Aspeed Technology on September 1, 2024 and sell it today you would earn a total of 28,102 from holding Aspeed Technology or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspeed Technology vs. Nan Ya Printed
Performance |
| Timeline |
| Aspeed Technology |
| Nan Ya Printed |
Aspeed Technology and Nan Ya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspeed Technology and Nan Ya
The main advantage of trading using opposite Aspeed Technology and Nan Ya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspeed Technology 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.| Aspeed Technology vs. Asmedia Technology | Aspeed Technology vs. Silergy Corp | Aspeed Technology vs. Parade Technologies | Aspeed Technology vs. Wiwynn Corp |
| Nan Ya vs. Unimicron Technology Corp | Nan Ya vs. Kinsus Interconnect Technology | Nan Ya vs. Novatek Microelectronics Corp | Nan Ya vs. Delta Electronics |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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