Correlation Between Marvell Technology and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Marvell Technology and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on Marvell Technology and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and Samsung Electronics.
Diversification Opportunities for Marvell Technology and Samsung Electronics
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marvell and Samsung is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology Group and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Marvell Technology i.e., Marvell Technology and Samsung Electronics go up and down completely randomly.
Pair Corralation between Marvell Technology and Samsung Electronics
If you would invest 8,335 in Marvell Technology Group on August 23, 2024 and sell it today you would earn a total of 959.00 from holding Marvell Technology Group or generate 11.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marvell Technology Group vs. Samsung Electronics Co
Performance |
| Timeline |
| Marvell Technology |
| Samsung Electronics |
Marvell Technology and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and Samsung Electronics
The main advantage of trading using opposite Marvell Technology and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Marvell Technology vs. NVIDIA | Marvell Technology vs. Intel | Marvell Technology vs. Taiwan Semiconductor Manufacturing | Marvell Technology vs. Micron Technology |
| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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