Correlation Between Nan Ya and Pan International
Can any of the company-specific risk be diversified away by investing in both Nan Ya and Pan International 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 Pan International 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 Pan International Industrial Corp, you can compare the effects of market volatilities on Nan Ya and Pan International 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 Pan International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nan Ya and Pan International.
Diversification Opportunities for Nan Ya and Pan International
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nan and Pan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Nan Ya Printed and Pan International Industrial C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan International 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 Pan International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan International has no effect on the direction of Nan Ya i.e., Nan Ya and Pan International go up and down completely randomly.
Pair Corralation between Nan Ya and Pan International
Assuming the 90 days trading horizon Nan Ya is expected to generate 1.32 times less return on investment than Pan International. In addition to that, Nan Ya is 1.18 times more volatile than Pan International Industrial Corp. It trades about 0.11 of its total potential returns per unit of risk. Pan International Industrial Corp is currently generating about 0.17 per unit of volatility. If you would invest 3,780 in Pan International Industrial Corp on December 5, 2024 and sell it today you would earn a total of 1,000.00 from holding Pan International Industrial Corp or generate 26.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Nan Ya Printed vs. Pan International Industrial C
Performance |
Timeline |
Nan Ya Printed |
Pan International |
Nan Ya and Pan International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nan Ya and Pan International
The main advantage of trading using opposite Nan Ya and Pan International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nan Ya position performs unexpectedly, Pan International 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 Pan International will offset losses from the drop in Pan International'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 |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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