Correlation Between Nan Ya and Fittech
Can any of the company-specific risk be diversified away by investing in both Nan Ya and Fittech 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 Fittech 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 Fittech Co, you can compare the effects of market volatilities on Nan Ya and Fittech 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 Fittech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nan Ya and Fittech.
Diversification Opportunities for Nan Ya and Fittech
Very good diversification
The 3 months correlation between Nan and Fittech is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nan Ya Printed and Fittech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fittech 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 Fittech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fittech has no effect on the direction of Nan Ya i.e., Nan Ya and Fittech go up and down completely randomly.
Pair Corralation between Nan Ya and Fittech
Assuming the 90 days trading horizon Nan Ya Printed is expected to under-perform the Fittech. But the stock apears to be less risky and, when comparing its historical volatility, Nan Ya Printed is 1.56 times less risky than Fittech. The stock trades about -0.11 of its potential returns per unit of risk. The Fittech Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,900 in Fittech Co on August 29, 2024 and sell it today you would earn a total of 9,900 from holding Fittech Co or generate 143.48% 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. Fittech Co
Performance |
| Timeline |
| Nan Ya Printed |
| Fittech |
Nan Ya and Fittech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nan Ya and Fittech
The main advantage of trading using opposite Nan Ya and Fittech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nan Ya position performs unexpectedly, Fittech 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 Fittech will offset losses from the drop in Fittech'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 |
| Fittech vs. Sitronix Technology Corp | Fittech vs. Taiwan Surface Mounting | Fittech vs. Nan Ya Printed | Fittech vs. Visual Photonics Epitaxy |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |