Correlation Between Nan Ya and Unimicron Technology
Can any of the company-specific risk be diversified away by investing in both Nan Ya and Unimicron 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 Nan Ya and Unimicron Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nan Ya Printed and Unimicron Technology Corp, you can compare the effects of market volatilities on Nan Ya and Unimicron 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 Nan Ya with a short position of Unimicron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nan Ya and Unimicron Technology.
Diversification Opportunities for Nan Ya and Unimicron Technology
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nan and Unimicron is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nan Ya Printed and Unimicron Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unimicron Technology Corp and Nan Ya 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 Nan Ya Printed are associated (or correlated) with Unimicron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unimicron Technology Corp has no effect on the direction of Nan Ya i.e., Nan Ya and Unimicron Technology go up and down completely randomly.
Pair Corralation between Nan Ya and Unimicron Technology
Assuming the 90 days trading horizon Nan Ya Printed is expected to under-perform the Unimicron Technology. But the stock apears to be less risky and, when comparing its historical volatility, Nan Ya Printed is 1.23 times less risky than Unimicron Technology. The stock trades about -0.07 of its potential returns per unit of risk. The Unimicron Technology Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 14,950 in Unimicron Technology Corp on August 30, 2024 and sell it today you would earn a total of 50.00 from holding Unimicron Technology Corp or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nan Ya Printed vs. Unimicron Technology Corp
Performance |
| Timeline |
| Nan Ya Printed |
| Unimicron Technology Corp |
Nan Ya and Unimicron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nan Ya and Unimicron Technology
The main advantage of trading using opposite Nan Ya and Unimicron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nan Ya position performs unexpectedly, Unimicron 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 Unimicron Technology will offset losses from the drop in Unimicron Technology's long position.| Nan Ya vs. Unimicron Technology Corp | Nan Ya vs. Kinsus Interconnect Technology | Nan Ya vs. Novatek Microelectronics Corp | Nan Ya vs. Delta Electronics |
| Unimicron Technology vs. Nan Ya Printed | Unimicron Technology vs. Kinsus Interconnect Technology | Unimicron Technology vs. Novatek Microelectronics Corp | Unimicron Technology vs. LARGAN Precision 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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