Correlation Between NanoViricides and Silicon Motion

Can any of the company-specific risk be diversified away by investing in both NanoViricides and Silicon Motion 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 NanoViricides and Silicon Motion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NanoViricides and Silicon Motion Technology, you can compare the effects of market volatilities on NanoViricides and Silicon Motion 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 NanoViricides with a short position of Silicon Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of NanoViricides and Silicon Motion.

Diversification Opportunities for NanoViricides and Silicon Motion

0.55

Correlation Coefficient

NanoViricides  Silicon Motion

Very weak diversification

The 3 months correlation between NanoViricides and Silicon is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding NanoViricides and Silicon Motion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Motion Technology and NanoViricides 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 NanoViricides are associated (or correlated) with Silicon Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Motion Technology has no effect on the direction of NanoViricides i.e., NanoViricides and Silicon Motion go up and down completely randomly.

Pair Corralation between NanoViricides and Silicon Motion

Given the investment horizon of 90 days NanoViricides is expected to under-perform the Silicon Motion. In addition to that, NanoViricides is 1.93 times more volatile than Silicon Motion Technology. It trades about -0.02 of its total potential returns per unit of risk. Silicon Motion Technology is currently generating about 0.06 per unit of volatility. If you would invest  8,436  in Silicon Motion Technology on September 8, 2025 and sell it today you would earn a total of  785.00  from holding Silicon Motion Technology or generate 9.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

NanoViricides  vs.  Silicon Motion Technology

NanoViricides

Risk-Adjusted Performance

Weakest

Over the last 90 days NanoViricides has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, NanoViricides is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Silicon Motion Technology

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Silicon Motion Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Silicon Motion may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with NanoViricides and Silicon Motion

The main advantage of trading using opposite NanoViricides and Silicon Motion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NanoViricides position performs unexpectedly, Silicon Motion 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 Silicon Motion will offset losses from the drop in Silicon Motion's long position.

The idea behind NanoViricides and Silicon Motion Technology 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.