Correlation Between Marvell Technology and NETAPP
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By analyzing existing cross correlation between Marvell Technology Group and NETAPP INC, you can compare the effects of market volatilities on Marvell Technology and NETAPP 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 NETAPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and NETAPP.
Diversification Opportunities for Marvell Technology and NETAPP
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marvell and NETAPP is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology Group and NETAPP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETAPP INC 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 NETAPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETAPP INC has no effect on the direction of Marvell Technology i.e., Marvell Technology and NETAPP go up and down completely randomly.
Pair Corralation between Marvell Technology and NETAPP
Given the investment horizon of 90 days Marvell Technology Group is expected to generate 3.38 times more return on investment than NETAPP. However, Marvell Technology is 3.38 times more volatile than NETAPP INC. It trades about 0.15 of its potential returns per unit of risk. NETAPP INC is currently generating about -0.12 per unit of risk. If you would invest 7,178 in Marvell Technology Group on August 23, 2024 and sell it today you would earn a total of 2,116 from holding Marvell Technology Group or generate 29.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Marvell Technology Group vs. NETAPP INC
Performance |
| Timeline |
| Marvell Technology |
| NETAPP INC |
Marvell Technology and NETAPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and NETAPP
The main advantage of trading using opposite Marvell Technology and NETAPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, NETAPP 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 NETAPP will offset losses from the drop in NETAPP's long position.| Marvell Technology vs. NVIDIA | Marvell Technology vs. Intel | Marvell Technology vs. Taiwan Semiconductor Manufacturing | Marvell Technology vs. Micron Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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