Correlation Between Marvell Technology and China Mengniu
Can any of the company-specific risk be diversified away by investing in both Marvell Technology and China Mengniu 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 China Mengniu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marvell Technology Group and China Mengniu Dairy, you can compare the effects of market volatilities on Marvell Technology and China Mengniu 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 China Mengniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and China Mengniu.
Diversification Opportunities for Marvell Technology and China Mengniu
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marvell and China is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology Group and China Mengniu Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mengniu Dairy 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 Group are associated (or correlated) with China Mengniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mengniu Dairy has no effect on the direction of Marvell Technology i.e., Marvell Technology and China Mengniu go up and down completely randomly.
Pair Corralation between Marvell Technology and China Mengniu
Given the investment horizon of 90 days Marvell Technology Group is expected to generate 1.01 times more return on investment than China Mengniu. However, Marvell Technology is 1.01 times more volatile than China Mengniu Dairy. It trades about 0.06 of its potential returns per unit of risk. China Mengniu Dairy is currently generating about -0.13 per unit of risk. If you would invest 7,148 in Marvell Technology Group on August 27, 2024 and sell it today you would earn a total of 2,103 from holding Marvell Technology Group or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 59.04% |
| Values | Daily Returns |
Marvell Technology Group vs. China Mengniu Dairy
Performance |
| Timeline |
| Marvell Technology |
| China Mengniu Dairy |
Marvell Technology and China Mengniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and China Mengniu
The main advantage of trading using opposite Marvell Technology and China Mengniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, China Mengniu 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 China Mengniu will offset losses from the drop in China Mengniu's long position.| Marvell Technology vs. NVIDIA | Marvell Technology vs. Intel | Marvell Technology vs. Taiwan Semiconductor Manufacturing | Marvell Technology vs. Micron Technology |
| China Mengniu vs. Artisan Consumer Goods | China Mengniu vs. The A2 Milk | China Mengniu vs. BioAdaptives | China Mengniu vs. General Mills |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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