Correlation Between Foxsemicon Integrated and Nan Ya

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Can any of the company-specific risk be diversified away by investing in both Foxsemicon Integrated 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 Foxsemicon Integrated and Nan Ya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foxsemicon Integrated Technology and Nan Ya Printed, you can compare the effects of market volatilities on Foxsemicon Integrated 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 Foxsemicon Integrated with a short position of Nan Ya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foxsemicon Integrated and Nan Ya.

Diversification Opportunities for Foxsemicon Integrated and Nan Ya

FoxsemiconNanDiversified AwayFoxsemiconNanDiversified Away100%
0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Foxsemicon and Nan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Foxsemicon Integrated Technolo 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 Foxsemicon Integrated 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 Foxsemicon Integrated Technology 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 Foxsemicon Integrated i.e., Foxsemicon Integrated and Nan Ya go up and down completely randomly.

Pair Corralation between Foxsemicon Integrated and Nan Ya

Assuming the 90 days trading horizon Foxsemicon Integrated Technology is expected to generate 0.96 times more return on investment than Nan Ya. However, Foxsemicon Integrated Technology is 1.04 times less risky than Nan Ya. It trades about 0.06 of its potential returns per unit of risk. Nan Ya Printed is currently generating about -0.06 per unit of risk. If you would invest  17,850  in Foxsemicon Integrated Technology on September 20, 2024 and sell it today you would earn a total of  13,250  from holding Foxsemicon Integrated Technology or generate 74.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy99.79%
ValuesDaily Returns

Foxsemicon Integrated Technolo  vs.  Nan Ya Printed

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -15-10-505
JavaScript chart by amCharts 3.21.153413 8046
       Timeline  
Foxsemicon Integrated 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Foxsemicon Integrated Technology 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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec300310320330340350360370380
Nan Ya Printed 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec105110115120125130135140145

Foxsemicon Integrated and Nan Ya Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.45-2.58-1.72-0.850.00.771.552.323.09 0.060.070.080.09
JavaScript chart by amCharts 3.21.153413 8046
       Returns  

Pair Trading with Foxsemicon Integrated and Nan Ya

The main advantage of trading using opposite Foxsemicon Integrated and Nan Ya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foxsemicon Integrated 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 Foxsemicon Integrated Technology 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.
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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