Correlation Between Macronix International and VIA Technologies
Can any of the company-specific risk be diversified away by investing in both Macronix International and VIA Technologies 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 Macronix International and VIA Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macronix International Co and VIA Technologies, you can compare the effects of market volatilities on Macronix International and VIA Technologies 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 Macronix International with a short position of VIA Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macronix International and VIA Technologies.
Diversification Opportunities for Macronix International and VIA Technologies
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Macronix and VIA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Macronix International Co and VIA Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIA Technologies and Macronix International 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 Macronix International Co are associated (or correlated) with VIA Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIA Technologies has no effect on the direction of Macronix International i.e., Macronix International and VIA Technologies go up and down completely randomly.
Pair Corralation between Macronix International and VIA Technologies
Assuming the 90 days trading horizon Macronix International Co is expected to generate 1.52 times more return on investment than VIA Technologies. However, Macronix International is 1.52 times more volatile than VIA Technologies. It trades about 0.37 of its potential returns per unit of risk. VIA Technologies is currently generating about 0.2 per unit of risk. If you would invest 1,880 in Macronix International Co on November 27, 2024 and sell it today you would earn a total of 290.00 from holding Macronix International Co or generate 15.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macronix International Co vs. VIA Technologies
Performance |
| Timeline |
| Macronix International |
| VIA Technologies |
Macronix International and VIA Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macronix International and VIA Technologies
The main advantage of trading using opposite Macronix International and VIA Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macronix International position performs unexpectedly, VIA Technologies 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 VIA Technologies will offset losses from the drop in VIA Technologies' long position.| Macronix International vs. Winbond Electronics Corp | Macronix International vs. United Microelectronics | Macronix International vs. Mosel Vitelic | Macronix International vs. VIA Technologies |
| VIA Technologies vs. United Microelectronics | VIA Technologies vs. Silicon Integrated Systems | VIA Technologies vs. Winbond Electronics Corp | VIA Technologies vs. Macronix International Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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