Correlation Between Nan Ya and Taiwan Surface
Can any of the company-specific risk be diversified away by investing in both Nan Ya and Taiwan Surface 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 Taiwan Surface 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 Taiwan Surface Mounting, you can compare the effects of market volatilities on Nan Ya and Taiwan Surface 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 Taiwan Surface. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nan Ya and Taiwan Surface.
Diversification Opportunities for Nan Ya and Taiwan Surface
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nan and Taiwan is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nan Ya Printed and Taiwan Surface Mounting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Surface Mounting 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 Taiwan Surface. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Surface Mounting has no effect on the direction of Nan Ya i.e., Nan Ya and Taiwan Surface go up and down completely randomly.
Pair Corralation between Nan Ya and Taiwan Surface
Assuming the 90 days trading horizon Nan Ya Printed is expected to generate 2.63 times more return on investment than Taiwan Surface. However, Nan Ya is 2.63 times more volatile than Taiwan Surface Mounting. It trades about 0.13 of its potential returns per unit of risk. Taiwan Surface Mounting is currently generating about 0.26 per unit of risk. If you would invest 12,750 in Nan Ya Printed on December 1, 2024 and sell it today you would earn a total of 850.00 from holding Nan Ya Printed or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nan Ya Printed vs. Taiwan Surface Mounting
Performance |
| Timeline |
| Nan Ya Printed |
| Taiwan Surface Mounting |
Nan Ya and Taiwan Surface Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nan Ya and Taiwan Surface
The main advantage of trading using opposite Nan Ya and Taiwan Surface positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nan Ya position performs unexpectedly, Taiwan Surface 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 Taiwan Surface will offset losses from the drop in Taiwan Surface'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 |
| Taiwan Surface vs. Unimicron Technology Corp | Taiwan Surface vs. Flexium Interconnect | Taiwan Surface vs. Radiant Opto Electronics Corp | Taiwan Surface vs. Kinsus Interconnect Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |