Correlation Between VIA Technologies and Nanya Technology
Can any of the company-specific risk be diversified away by investing in both VIA Technologies and Nanya Technology 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 VIA Technologies and Nanya Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIA Technologies and Nanya Technology Corp, you can compare the effects of market volatilities on VIA Technologies and Nanya Technology 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 VIA Technologies with a short position of Nanya Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIA Technologies and Nanya Technology.
Diversification Opportunities for VIA Technologies and Nanya Technology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VIA and Nanya is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding VIA Technologies and Nanya Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanya Technology Corp and VIA Technologies 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 VIA Technologies are associated (or correlated) with Nanya Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanya Technology Corp has no effect on the direction of VIA Technologies i.e., VIA Technologies and Nanya Technology go up and down completely randomly.
Pair Corralation between VIA Technologies and Nanya Technology
Assuming the 90 days trading horizon VIA Technologies is expected to generate 12.83 times less return on investment than Nanya Technology. But when comparing it to its historical volatility, VIA Technologies is 2.44 times less risky than Nanya Technology. It trades about 0.12 of its potential returns per unit of risk. Nanya Technology Corp is currently generating about 0.64 of returns per unit of risk over similar time horizon. If you would invest 2,795 in Nanya Technology Corp on November 28, 2024 and sell it today you would earn a total of 1,495 from holding Nanya Technology Corp or generate 53.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIA Technologies vs. Nanya Technology Corp
Performance |
| Timeline |
| VIA Technologies |
| Nanya Technology Corp |
VIA Technologies and Nanya Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIA Technologies and Nanya Technology
The main advantage of trading using opposite VIA Technologies and Nanya Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIA Technologies position performs unexpectedly, Nanya Technology 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 Nanya Technology will offset losses from the drop in Nanya Technology's long position.| VIA Technologies vs. United Microelectronics | VIA Technologies vs. Silicon Integrated Systems | VIA Technologies vs. Winbond Electronics Corp | VIA Technologies vs. Macronix International Co |
| Nanya Technology vs. Winbond Electronics Corp | Nanya Technology vs. AU Optronics | Nanya Technology vs. Macronix International Co | Nanya Technology vs. United Microelectronics |
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..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |