Correlation Between WIN Semiconductors and Nan Ya

Can any of the company-specific risk be diversified away by investing in both WIN Semiconductors and Nan Ya 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 WIN Semiconductors and Nan Ya into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WIN Semiconductors and Nan Ya Printed, you can compare the effects of market volatilities on WIN Semiconductors and Nan Ya 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 WIN Semiconductors with a short position of Nan Ya. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIN Semiconductors and Nan Ya.

Diversification Opportunities for WIN Semiconductors and Nan Ya

-0.09

Correlation Coefficient

WIN Semiconductors  Nan Ya

Good diversification

The 3 months correlation between WIN and Nan is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding WIN Semiconductors and Nan Ya Printed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nan Ya Printed and WIN Semiconductors 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 WIN Semiconductors are associated (or correlated) with Nan Ya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nan Ya Printed has no effect on the direction of WIN Semiconductors i.e., WIN Semiconductors and Nan Ya go up and down completely randomly.

Pair Corralation between WIN Semiconductors and Nan Ya

Assuming the 90 days trading horizon WIN Semiconductors is expected to generate 0.88 times more return on investment than Nan Ya. However, WIN Semiconductors is 1.13 times less risky than Nan Ya. It trades about 0.0 of its potential returns per unit of risk. Nan Ya Printed is currently generating about 0.0 per unit of risk. If you would invest  11,400  in WIN Semiconductors on December 28, 2024 and sell it today you would lose (150.00) from holding WIN Semiconductors or give up 1.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

WIN Semiconductors  vs.  Nan Ya Printed

WIN Semiconductors

Risk-Adjusted Performance

Very Weak

Over the last 90 days WIN Semiconductors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, WIN Semiconductors is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Nan Ya Printed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nan Ya Printed has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with WIN Semiconductors and Nan Ya

The main advantage of trading using opposite WIN Semiconductors and Nan Ya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIN Semiconductors position performs unexpectedly, Nan Ya 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 Nan Ya will offset losses from the drop in Nan Ya's long position.

The idea behind WIN Semiconductors and Nan Ya Printed 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..