Correlation Between Nanya New and Kingsignal Technology
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By analyzing existing cross correlation between Nanya New Material and Kingsignal Technology Co, you can compare the effects of market volatilities on Nanya New and Kingsignal 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 Nanya New with a short position of Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanya New and Kingsignal Technology.
Diversification Opportunities for Nanya New and Kingsignal Technology
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nanya and Kingsignal is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nanya New Material and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal Technology and Nanya New 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 Nanya New Material are associated (or correlated) with Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of Nanya New i.e., Nanya New and Kingsignal Technology go up and down completely randomly.
Pair Corralation between Nanya New and Kingsignal Technology
Assuming the 90 days trading horizon Nanya New Material is expected to generate 0.74 times more return on investment than Kingsignal Technology. However, Nanya New Material is 1.35 times less risky than Kingsignal Technology. It trades about 0.23 of its potential returns per unit of risk. Kingsignal Technology Co is currently generating about 0.11 per unit of risk. If you would invest 1,917 in Nanya New Material on November 7, 2024 and sell it today you would earn a total of 239.00 from holding Nanya New Material or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanya New Material vs. Kingsignal Technology Co
Performance |
| Timeline |
| Nanya New Material |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kingsignal Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nanya New and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanya New and Kingsignal Technology
The main advantage of trading using opposite Nanya New and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanya New position performs unexpectedly, Kingsignal 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.The idea behind Nanya New Material and Kingsignal Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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