Correlation Between Seagate Technology and Marvell Technology
Can any of the company-specific risk be diversified away by investing in both Seagate Technology and Marvell Technology 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 Seagate Technology and Marvell Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seagate Technology Holdings and Marvell Technology, you can compare the effects of market volatilities on Seagate Technology and Marvell Technology 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 Seagate Technology with a short position of Marvell Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seagate Technology and Marvell Technology.
Diversification Opportunities for Seagate Technology and Marvell Technology
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Seagate and Marvell is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Seagate Technology Holdings and Marvell Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marvell Technology and Seagate 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 Seagate Technology Holdings are associated (or correlated) with Marvell Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marvell Technology has no effect on the direction of Seagate Technology i.e., Seagate Technology and Marvell Technology go up and down completely randomly.
Pair Corralation between Seagate Technology and Marvell Technology
Assuming the 90 days trading horizon Seagate Technology is expected to generate 1.51 times less return on investment than Marvell Technology. But when comparing it to its historical volatility, Seagate Technology Holdings is 1.28 times less risky than Marvell Technology. It trades about 0.07 of its potential returns per unit of risk. Marvell Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,154 in Marvell Technology on October 16, 2024 and sell it today you would earn a total of 4,883 from holding Marvell Technology or generate 226.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Seagate Technology Holdings vs. Marvell Technology
Performance |
| Timeline |
| Seagate Technology |
| Marvell Technology |
Seagate Technology and Marvell Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seagate Technology and Marvell Technology
The main advantage of trading using opposite Seagate Technology and Marvell Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seagate Technology position performs unexpectedly, Marvell Technology 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 Marvell Technology will offset losses from the drop in Marvell Technology's long position.| Seagate Technology vs. G2D Investments | Seagate Technology vs. Charter Communications | Seagate Technology vs. United Natural Foods, | Seagate Technology vs. Tyson Foods |
| Marvell Technology vs. Clover Health Investments, | Marvell Technology vs. Paycom Software | Marvell Technology vs. TAL Education Group | Marvell Technology vs. Seagate Technology Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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