Correlation Between Marvell Technology and Citigroup
Can any of the company-specific risk be diversified away by investing in both Marvell Technology and Citigroup 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 Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marvell Technology and Citigroup, you can compare the effects of market volatilities on Marvell Technology and Citigroup 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 Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and Citigroup.
Diversification Opportunities for Marvell Technology and Citigroup
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Marvell and Citigroup is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Marvell Technology i.e., Marvell Technology and Citigroup go up and down completely randomly.
Pair Corralation between Marvell Technology and Citigroup
Assuming the 90 days trading horizon Marvell Technology is expected to generate 1.98 times more return on investment than Citigroup. However, Marvell Technology is 1.98 times more volatile than Citigroup. It trades about 0.09 of its potential returns per unit of risk. Citigroup is currently generating about 0.1 per unit of risk. If you would invest 1,908 in Marvell Technology on September 12, 2024 and sell it today you would earn a total of 4,497 from holding Marvell Technology or generate 235.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.4% |
| Values | Daily Returns |
Marvell Technology vs. Citigroup
Performance |
| Timeline |
| Marvell Technology |
| Citigroup |
Marvell Technology and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and Citigroup
The main advantage of trading using opposite Marvell Technology and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| Marvell Technology vs. United Rentals | Marvell Technology vs. Take Two Interactive Software | Marvell Technology vs. STMicroelectronics NV | Marvell Technology vs. Paycom Software |
| Citigroup vs. Align Technology | Citigroup vs. Apartment Investment and | Citigroup vs. Global X Funds | Citigroup vs. Marvell Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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