Correlation Between Hudson Acquisition and MARVELL

Can any of the company-specific risk be diversified away by investing in both Hudson Acquisition and MARVELL 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 Hudson Acquisition and MARVELL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hudson Acquisition I and MARVELL TECHNOLOGY GROUP, you can compare the effects of market volatilities on Hudson Acquisition and MARVELL 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 Hudson Acquisition with a short position of MARVELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Acquisition and MARVELL.

Diversification Opportunities for Hudson Acquisition and MARVELL

0.0

Correlation Coefficient

Hudson Acquisition  MARVELL

Pay attention - limited upside

The 3 months correlation between Hudson and MARVELL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Acquisition I and MARVELL TECHNOLOGY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARVELL TECHNOLOGY and Hudson Acquisition 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 Hudson Acquisition I are associated (or correlated) with MARVELL. 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 Hudson Acquisition i.e., Hudson Acquisition and MARVELL go up and down completely randomly.

Pair Corralation between Hudson Acquisition and MARVELL

If you would invest (100.00) in Hudson Acquisition I on December 24, 2024 and sell it today you would earn a total of  100.00  from holding Hudson Acquisition I or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Hudson Acquisition I  vs.  MARVELL TECHNOLOGY GROUP

Hudson Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hudson Acquisition I has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Hudson Acquisition is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

MARVELL TECHNOLOGY

Risk-Adjusted Performance

Very Weak

Over the last 90 days MARVELL TECHNOLOGY GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for MARVELL TECHNOLOGY GROUP investors.

Pair Trading with Hudson Acquisition and MARVELL

The main advantage of trading using opposite Hudson Acquisition and MARVELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Acquisition position performs unexpectedly, MARVELL 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 will offset losses from the drop in MARVELL's long position.

The idea behind Hudson Acquisition I and MARVELL TECHNOLOGY GROUP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.