Correlation Between Marvell Technology and Smart REIT
Can any of the company-specific risk be diversified away by investing in both Marvell Technology and Smart REIT 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 Smart REIT 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 Smart REIT, you can compare the effects of market volatilities on Marvell Technology and Smart REIT 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 Smart REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and Smart REIT.
Diversification Opportunities for Marvell Technology and Smart REIT
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marvell and Smart is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology Group and Smart REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart REIT 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 Smart REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart REIT has no effect on the direction of Marvell Technology i.e., Marvell Technology and Smart REIT go up and down completely randomly.
Pair Corralation between Marvell Technology and Smart REIT
Given the investment horizon of 90 days Marvell Technology Group is expected to generate 2.38 times more return on investment than Smart REIT. However, Marvell Technology is 2.38 times more volatile than Smart REIT. It trades about 0.24 of its potential returns per unit of risk. Smart REIT is currently generating about -0.14 per unit of risk. If you would invest 8,183 in Marvell Technology Group on August 24, 2024 and sell it today you would earn a total of 1,111 from holding Marvell Technology Group or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marvell Technology Group vs. Smart REIT
Performance |
| Timeline |
| Marvell Technology |
| Smart REIT |
Marvell Technology and Smart REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and Smart REIT
The main advantage of trading using opposite Marvell Technology and Smart REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, Smart REIT 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 Smart REIT will offset losses from the drop in Smart REIT's long position.| Marvell Technology vs. Eshallgo Class A | Marvell Technology vs. Amtech Systems | Marvell Technology vs. Gold Fields Ltd | Marvell Technology vs. Aegean Airlines SA |
| Smart REIT vs. Slate Grocery REIT | Smart REIT vs. Phillips Edison Co | Smart REIT vs. Choice Properties Real | Smart REIT vs. Simon Property Group |
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.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |