Correlation Between Nan Ya and Creative Sensor
Can any of the company-specific risk be diversified away by investing in both Nan Ya and Creative Sensor 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 Creative Sensor 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 Creative Sensor, you can compare the effects of market volatilities on Nan Ya and Creative Sensor 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 Creative Sensor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nan Ya and Creative Sensor.
Diversification Opportunities for Nan Ya and Creative Sensor
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nan and Creative is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nan Ya Printed and Creative Sensor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Sensor 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 Creative Sensor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Sensor has no effect on the direction of Nan Ya i.e., Nan Ya and Creative Sensor go up and down completely randomly.
Pair Corralation between Nan Ya and Creative Sensor
Assuming the 90 days trading horizon Nan Ya Printed is expected to generate 0.85 times more return on investment than Creative Sensor. However, Nan Ya Printed is 1.17 times less risky than Creative Sensor. It trades about 0.18 of its potential returns per unit of risk. Creative Sensor is currently generating about -0.15 per unit of risk. If you would invest 11,750 in Nan Ya Printed on October 24, 2024 and sell it today you would earn a total of 1,450 from holding Nan Ya Printed or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nan Ya Printed vs. Creative Sensor
Performance |
| Timeline |
| Nan Ya Printed |
| Creative Sensor |
Nan Ya and Creative Sensor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nan Ya and Creative Sensor
The main advantage of trading using opposite Nan Ya and Creative Sensor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nan Ya position performs unexpectedly, Creative Sensor 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 Creative Sensor will offset losses from the drop in Creative Sensor'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 |
| Creative Sensor vs. Acbel Polytech | Creative Sensor vs. I Sheng Electric Wire | Creative Sensor vs. Nan Ya Printed | Creative Sensor vs. Powertech 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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