Correlation Between Marvell Technology and Granite Creek
Can any of the company-specific risk be diversified away by investing in both Marvell Technology and Granite Creek 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 Granite Creek 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 Granite Creek Copper, you can compare the effects of market volatilities on Marvell Technology and Granite Creek 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 Granite Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and Granite Creek.
Diversification Opportunities for Marvell Technology and Granite Creek
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marvell and Granite is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology Group and Granite Creek Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Creek Copper 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 Granite Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Creek Copper has no effect on the direction of Marvell Technology i.e., Marvell Technology and Granite Creek go up and down completely randomly.
Pair Corralation between Marvell Technology and Granite Creek
Given the investment horizon of 90 days Marvell Technology Group is expected to generate 0.44 times more return on investment than Granite Creek. However, Marvell Technology Group is 2.26 times less risky than Granite Creek. It trades about 0.3 of its potential returns per unit of risk. Granite Creek Copper is currently generating about 0.0 per unit of risk. If you would invest 8,011 in Marvell Technology Group on September 1, 2024 and sell it today you would earn a total of 1,258 from holding Marvell Technology Group or generate 15.7% 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. Granite Creek Copper
Performance |
| Timeline |
| Marvell Technology |
| Granite Creek Copper |
Marvell Technology and Granite Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and Granite Creek
The main advantage of trading using opposite Marvell Technology and Granite Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, Granite Creek 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 Granite Creek will offset losses from the drop in Granite Creek's long position.| Marvell Technology vs. NVIDIA | Marvell Technology vs. Intel | Marvell Technology vs. Taiwan Semiconductor Manufacturing | Marvell Technology vs. Micron Technology |
| Granite Creek vs. Macmahon Holdings Limited | Granite Creek vs. Prime Meridian Resources | Granite Creek vs. Rokmaster Resources Corp | Granite Creek vs. Hudson Resources |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |