Correlation Between Marvell Technology and 2 Year
Can any of the company-specific risk be diversified away by investing in both Marvell Technology and 2 Year 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 2 Year 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 2 Year T Note Futures, you can compare the effects of market volatilities on Marvell Technology and 2 Year 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 2 Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marvell Technology and 2 Year.
Diversification Opportunities for Marvell Technology and 2 Year
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marvell and ZTUSD is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology Group and 2 Year T Note Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2 Year T 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 2 Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2 Year T has no effect on the direction of Marvell Technology i.e., Marvell Technology and 2 Year go up and down completely randomly.
Pair Corralation between Marvell Technology and 2 Year
Given the investment horizon of 90 days Marvell Technology Group is expected to generate 26.23 times more return on investment than 2 Year. However, Marvell Technology is 26.23 times more volatile than 2 Year T Note Futures. It trades about 0.04 of its potential returns per unit of risk. 2 Year T Note Futures is currently generating about 0.03 per unit of risk. If you would invest 7,853 in Marvell Technology Group on September 1, 2024 and sell it today you would earn a total of 1,416 from holding Marvell Technology Group or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.91% |
| Values | Daily Returns |
Marvell Technology Group vs. 2 Year T Note Futures
Performance |
| Timeline |
| Marvell Technology |
| 2 Year T |
Marvell Technology and 2 Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marvell Technology and 2 Year
The main advantage of trading using opposite Marvell Technology and 2 Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marvell Technology position performs unexpectedly, 2 Year 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 2 Year will offset losses from the drop in 2 Year'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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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