Correlation Between Credit Acceptance and Marvell Technology
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance and Marvell 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 Credit Acceptance and Marvell Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and Marvell Technology, you can compare the effects of market volatilities on Credit Acceptance and Marvell 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 Credit Acceptance with a short position of Marvell Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and Marvell Technology.
Diversification Opportunities for Credit Acceptance and Marvell Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Marvell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and Marvell Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marvell Technology and Credit Acceptance 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 Credit Acceptance are associated (or correlated) with Marvell Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marvell Technology has no effect on the direction of Credit Acceptance i.e., Credit Acceptance and Marvell Technology go up and down completely randomly.
Pair Corralation between Credit Acceptance and Marvell Technology
If you would invest 4,635 in Marvell Technology on August 24, 2024 and sell it today you would earn a total of 770.00 from holding Marvell Technology or generate 16.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Acceptance vs. Marvell Technology
Performance |
| Timeline |
| Credit Acceptance |
| Marvell Technology |
Credit Acceptance and Marvell Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and Marvell Technology
The main advantage of trading using opposite Credit Acceptance and Marvell Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance position performs unexpectedly, Marvell 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 Marvell Technology will offset losses from the drop in Marvell Technology's long position.| Credit Acceptance vs. Marvell Technology | Credit Acceptance vs. Take Two Interactive Software | Credit Acceptance vs. Uber Technologies | Credit Acceptance vs. Paycom Software |
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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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