Correlation Between TC Traders and Marvell Technology

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

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

Diversification Opportunities for TC Traders and Marvell Technology

0.02

Correlation Coefficient

TC Traders  Marvell Technology

Significant diversification

The 3 months correlation between TRAD3 and Marvell is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding TC Traders Club and Marvell Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marvell Technology and TC Traders 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 TC Traders Club 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 TC Traders i.e., TC Traders and Marvell Technology go up and down completely randomly.

Pair Corralation between TC Traders and Marvell Technology

Assuming the 90 days trading horizon TC Traders Club is expected to generate 1.37 times more return on investment than Marvell Technology. However, TC Traders is 1.37 times more volatile than Marvell Technology. It trades about 0.09 of its potential returns per unit of risk. Marvell Technology is currently generating about 0.12 per unit of risk. If you would invest  635.00  in TC Traders Club on April 24, 2025 and sell it today you would earn a total of  126.00  from holding TC Traders Club or generate 19.84% return on investment over 90 days.

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

TC Traders Club  vs.  Marvell Technology

TC Traders Club

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TC Traders Club are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, TC Traders unveiled solid returns over the last few months and may actually be approaching a breakup point.

Marvell Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marvell Technology are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Marvell Technology sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TC Traders and Marvell Technology

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

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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 Transaction History module to view history of all your transactions and understand their impact on performance.