Correlation Between Nanya Technology and VIA Technologies
Can any of the company-specific risk be diversified away by investing in both Nanya Technology 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 Nanya Technology and VIA Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanya Technology Corp and VIA Technologies, you can compare the effects of market volatilities on Nanya Technology 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 Nanya Technology with a short position of VIA Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanya Technology and VIA Technologies.
Diversification Opportunities for Nanya Technology and VIA Technologies
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanya and VIA is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nanya Technology Corp and VIA Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIA Technologies and Nanya Technology 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 Nanya Technology Corp 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 Nanya Technology i.e., Nanya Technology and VIA Technologies go up and down completely randomly.
Pair Corralation between Nanya Technology and VIA Technologies
Assuming the 90 days trading horizon Nanya Technology Corp is expected to under-perform the VIA Technologies. In addition to that, Nanya Technology is 1.13 times more volatile than VIA Technologies. It trades about -0.2 of its total potential returns per unit of risk. VIA Technologies is currently generating about -0.15 per unit of volatility. If you would invest 12,050 in VIA Technologies on October 26, 2024 and sell it today you would lose (2,680) from holding VIA Technologies or give up 22.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanya Technology Corp vs. VIA Technologies
Performance |
| Timeline |
| Nanya Technology Corp |
| VIA Technologies |
Nanya Technology and VIA Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanya Technology and VIA Technologies
The main advantage of trading using opposite Nanya Technology and VIA Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanya Technology 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.| Nanya Technology vs. Winbond Electronics Corp | Nanya Technology vs. AU Optronics | Nanya Technology vs. Macronix International Co | Nanya Technology vs. United Microelectronics |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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