Correlation Between Marvell Technology and SANDS
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By analyzing existing cross correlation between Marvell Technology Group and SANDS CHINA LTD, you can compare the effects of market volatilities on Marvell Technology and SANDS 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 SANDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and SANDS.
Diversification Opportunities for Marvell Technology and SANDS
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marvell and SANDS is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology Group and SANDS CHINA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANDS CHINA LTD 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 SANDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANDS CHINA LTD has no effect on the direction of Marvell Technology i.e., Marvell Technology and SANDS go up and down completely randomly.
Pair Corralation between Marvell Technology and SANDS
Given the investment horizon of 90 days Marvell Technology Group is expected to generate 7.55 times more return on investment than SANDS. However, Marvell Technology is 7.55 times more volatile than SANDS CHINA LTD. It trades about 0.24 of its potential returns per unit of risk. SANDS CHINA LTD is currently generating about -0.25 per unit of risk. If you would invest 8,193 in Marvell Technology Group on August 25, 2024 and sell it today you would earn a total of 1,058 from holding Marvell Technology Group or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Marvell Technology Group vs. SANDS CHINA LTD
Performance |
| Timeline |
| Marvell Technology |
| SANDS CHINA LTD |
Marvell Technology and SANDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and SANDS
The main advantage of trading using opposite Marvell Technology and SANDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, SANDS 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 SANDS will offset losses from the drop in SANDS'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 |
| SANDS vs. Ultra Clean Holdings | SANDS vs. SunOpta | SANDS vs. FitLife Brands, Common | SANDS vs. National Beverage 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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