Correlation Between Nan Ya and Enlight Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nan Ya and Enlight Corp 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 Enlight Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nan Ya Plastics and Enlight Corp, you can compare the effects of market volatilities on Nan Ya and Enlight Corp 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 Enlight Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nan Ya and Enlight Corp.

Diversification Opportunities for Nan Ya and Enlight Corp

0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Nan and Enlight is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nan Ya Plastics and Enlight Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlight 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 Plastics are associated (or correlated) with Enlight Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlight Corp has no effect on the direction of Nan Ya i.e., Nan Ya and Enlight Corp go up and down completely randomly.

Pair Corralation between Nan Ya and Enlight Corp

Assuming the 90 days trading horizon Nan Ya Plastics is expected to generate 0.52 times more return on investment than Enlight Corp. However, Nan Ya Plastics is 1.93 times less risky than Enlight Corp. It trades about 0.02 of its potential returns per unit of risk. Enlight Corp is currently generating about -0.13 per unit of risk. If you would invest  3,935  in Nan Ya Plastics on September 5, 2024 and sell it today you would earn a total of  30.00  from holding Nan Ya Plastics or generate 0.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Nan Ya Plastics  vs.  Enlight Corp

 Performance 
       Timeline  
Nan Ya Plastics 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Nan Ya Plastics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Nan Ya is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Enlight Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Enlight Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Nan Ya and Enlight Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nan Ya and Enlight Corp

The main advantage of trading using opposite Nan Ya and Enlight Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nan Ya position performs unexpectedly, Enlight Corp 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 Enlight Corp will offset losses from the drop in Enlight Corp's long position.
The idea behind Nan Ya Plastics and Enlight Corp 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Share Portfolio
Track or share privately all of your investments from the convenience of any device