Correlation Between Marvell Technology and Singapore Airlines
Can any of the company-specific risk be diversified away by investing in both Marvell Technology and Singapore Airlines 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 Singapore Airlines 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 Singapore Airlines, you can compare the effects of market volatilities on Marvell Technology and Singapore Airlines 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 Singapore Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and Singapore Airlines.
Diversification Opportunities for Marvell Technology and Singapore Airlines
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marvell and Singapore is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology Group and Singapore Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Airlines 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 Singapore Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Airlines has no effect on the direction of Marvell Technology i.e., Marvell Technology and Singapore Airlines go up and down completely randomly.
Pair Corralation between Marvell Technology and Singapore Airlines
Given the investment horizon of 90 days Marvell Technology Group is expected to generate 0.64 times more return on investment than Singapore Airlines. However, Marvell Technology Group is 1.56 times less risky than Singapore Airlines. It trades about 0.3 of its potential returns per unit of risk. Singapore Airlines is currently generating about -0.1 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marvell Technology Group vs. Singapore Airlines
Performance |
| Timeline |
| Marvell Technology |
| Singapore Airlines |
Marvell Technology and Singapore Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and Singapore Airlines
The main advantage of trading using opposite Marvell Technology and Singapore Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, Singapore Airlines 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 Singapore Airlines will offset losses from the drop in Singapore Airlines' long position.| Marvell Technology vs. NVIDIA | Marvell Technology vs. Intel | Marvell Technology vs. Taiwan Semiconductor Manufacturing | Marvell Technology vs. Micron Technology |
| Singapore Airlines vs. Copa Holdings SA | Singapore Airlines vs. United Airlines Holdings | Singapore Airlines vs. Delta Air Lines | Singapore Airlines vs. SkyWest |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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