Correlation Between Marvell Technology and BIONTECH
Can any of the company-specific risk be diversified away by investing in both Marvell Technology and BIONTECH 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 Marvell Technology and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marvell Technology and BIONTECH SE DRN, you can compare the effects of market volatilities on Marvell Technology and BIONTECH 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 Marvell Technology with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and BIONTECH.
Diversification Opportunities for Marvell Technology and BIONTECH
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marvell and BIONTECH is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology and BIONTECH SE DRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIONTECH SE DRN and Marvell 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 Marvell Technology are associated (or correlated) with BIONTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIONTECH SE DRN has no effect on the direction of Marvell Technology i.e., Marvell Technology and BIONTECH go up and down completely randomly.
Pair Corralation between Marvell Technology and BIONTECH
Assuming the 90 days trading horizon Marvell Technology is expected to generate 0.74 times more return on investment than BIONTECH. However, Marvell Technology is 1.35 times less risky than BIONTECH. It trades about 0.25 of its potential returns per unit of risk. BIONTECH SE DRN is currently generating about 0.12 per unit of risk. If you would invest 4,775 in Marvell Technology on August 28, 2024 and sell it today you would earn a total of 645.00 from holding Marvell Technology or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marvell Technology vs. BIONTECH SE DRN
Performance |
| Timeline |
| Marvell Technology |
| BIONTECH SE DRN |
Marvell Technology and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and BIONTECH
The main advantage of trading using opposite Marvell Technology and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, BIONTECH 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 BIONTECH will offset losses from the drop in BIONTECH's long position.| Marvell Technology vs. Take Two Interactive Software | Marvell Technology vs. Bread Financial Holdings | Marvell Technology vs. NXP Semiconductors NV | Marvell Technology vs. Sumitomo Mitsui Financial |
| BIONTECH vs. Fras le SA | BIONTECH vs. Clave Indices De | BIONTECH vs. BTG Pactual Logstica | BIONTECH vs. Telefonaktiebolaget LM Ericsson |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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