Correlation Between Marvell Technology and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Marvell Technology and Banco Santander 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 Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marvell Technology and Banco Santander Chile, you can compare the effects of market volatilities on Marvell Technology and Banco Santander 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 Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and Banco Santander.
Diversification Opportunities for Marvell Technology and Banco Santander
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marvell and Banco is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology and Banco Santander Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Chile 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 Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander Chile has no effect on the direction of Marvell Technology i.e., Marvell Technology and Banco Santander go up and down completely randomly.
Pair Corralation between Marvell Technology and Banco Santander
Assuming the 90 days trading horizon Marvell Technology is expected to generate 2.07 times more return on investment than Banco Santander. However, Marvell Technology is 2.07 times more volatile than Banco Santander Chile. It trades about 0.09 of its potential returns per unit of risk. Banco Santander Chile is currently generating about 0.06 per unit of risk. If you would invest 1,913 in Marvell Technology on September 13, 2024 and sell it today you would earn a total of 4,705 from holding Marvell Technology or generate 245.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Marvell Technology vs. Banco Santander Chile
Performance |
| Timeline |
| Marvell Technology |
| Banco Santander Chile |
Marvell Technology and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and Banco Santander
The main advantage of trading using opposite Marvell Technology and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, Banco Santander 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 Banco Santander will offset losses from the drop in Banco Santander's long position.| Marvell Technology vs. Taiwan Semiconductor Manufacturing | Marvell Technology vs. Apple Inc | Marvell Technology vs. Alibaba Group Holding | Marvell Technology vs. Microsoft |
| Banco Santander vs. Tyson Foods | Banco Santander vs. Marvell Technology | Banco Santander vs. Autohome | Banco Santander vs. Taiwan Semiconductor Manufacturing |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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