Correlation Between SVB T and Marquette National
Can any of the company-specific risk be diversified away by investing in both SVB T and Marquette National 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 SVB T and Marquette National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVB T Corp and Marquette National Corp, you can compare the effects of market volatilities on SVB T and Marquette National 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 SVB T with a short position of Marquette National. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB T and Marquette National.
Diversification Opportunities for SVB T and Marquette National
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SVB and Marquette is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SVB T Corp and Marquette National Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marquette National Corp and SVB T 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 SVB T Corp are associated (or correlated) with Marquette National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marquette National Corp has no effect on the direction of SVB T i.e., SVB T and Marquette National go up and down completely randomly.
Pair Corralation between SVB T and Marquette National
Given the investment horizon of 90 days SVB T Corp is expected to generate 0.2 times more return on investment than Marquette National. However, SVB T Corp is 5.12 times less risky than Marquette National. It trades about 0.32 of its potential returns per unit of risk. Marquette National Corp is currently generating about 0.06 per unit of risk. If you would invest 4,100 in SVB T Corp on September 3, 2024 and sell it today you would earn a total of 125.00 from holding SVB T Corp or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVB T Corp vs. Marquette National Corp
Performance |
| Timeline |
| SVB T Corp |
| Marquette National Corp |
SVB T and Marquette National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVB T and Marquette National
The main advantage of trading using opposite SVB T and Marquette National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB T position performs unexpectedly, Marquette National 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 Marquette National will offset losses from the drop in Marquette National's long position.| SVB T vs. First Hawaiian | SVB T vs. Central Pacific Financial | SVB T vs. Territorial Bancorp | SVB T vs. Comerica |
| Marquette National vs. Heartland Banccorp | Marquette National vs. Pinnacle Bankshares | Marquette National vs. Malaga Financial | Marquette National vs. Isabella Bank |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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