Correlation Between Taiwan Surface and Nan Ya
Can any of the company-specific risk be diversified away by investing in both Taiwan Surface 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 Taiwan Surface and Nan Ya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taiwan Surface Mounting and Nan Ya Printed, you can compare the effects of market volatilities on Taiwan Surface 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 Taiwan Surface with a short position of Nan Ya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Surface and Nan Ya.
Diversification Opportunities for Taiwan Surface and Nan Ya
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Taiwan and Nan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Surface Mounting 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 Taiwan Surface 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 Taiwan Surface Mounting 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 Taiwan Surface i.e., Taiwan Surface and Nan Ya go up and down completely randomly.
Pair Corralation between Taiwan Surface and Nan Ya
Assuming the 90 days trading horizon Taiwan Surface Mounting is expected to generate 0.79 times more return on investment than Nan Ya. However, Taiwan Surface Mounting is 1.26 times less risky than Nan Ya. It trades about 0.02 of its potential returns per unit of risk. Nan Ya Printed is currently generating about -0.07 per unit of risk. If you would invest 9,750 in Taiwan Surface Mounting on September 3, 2024 and sell it today you would earn a total of 600.00 from holding Taiwan Surface Mounting or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taiwan Surface Mounting vs. Nan Ya Printed
Performance |
| Timeline |
| Taiwan Surface Mounting |
| Nan Ya Printed |
Taiwan Surface and Nan Ya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taiwan Surface and Nan Ya
The main advantage of trading using opposite Taiwan Surface and Nan Ya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiwan Surface 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.| Taiwan Surface vs. Unimicron Technology Corp | Taiwan Surface vs. Flexium Interconnect | Taiwan Surface vs. Radiant Opto Electronics Corp | Taiwan Surface vs. Kinsus Interconnect Technology |
| 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |