Correlation Between Springs Global and Marvell Technology

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

By analyzing existing cross correlation between Springs Global Participaes and Marvell Technology, you can compare the effects of market volatilities on Springs Global 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 Springs Global with a short position of Marvell Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Springs Global and Marvell Technology.

Diversification Opportunities for Springs Global and Marvell Technology

0.0

Correlation Coefficient

Springs Global  Marvell Technology

Pay attention - limited upside

The 3 months correlation between Springs and Marvell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Springs Global Participaes and Marvell Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marvell Technology and Springs Global 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 Springs Global Participaes 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 Springs Global i.e., Springs Global and Marvell Technology go up and down completely randomly.

Pair Corralation between Springs Global and Marvell Technology

If you would invest  5,503  in Marvell Technology on November 29, 2024 and sell it today you would lose (10.00) from holding Marvell Technology or give up 0.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Springs Global Participaes  vs.  Marvell Technology

Springs Global Parti

Risk-Adjusted Performance

Very Weak

Over the last 90 days Springs Global Participaes has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Springs Global is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Marvell Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marvell Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Marvell Technology may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Springs Global and Marvell Technology

The main advantage of trading using opposite Springs Global and Marvell Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Springs Global 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.

The idea behind Springs Global Participaes and Marvell Technology 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.