Marvell Technology (Brazil) Volatility
| M2RV34 Stock | 35.90 0.18 0.50% |
We consider Marvell Technology very steady. Marvell Technology has Sharpe Ratio of 0.0203, which conveys that the firm had a 0.0203% return per unit of risk over the last 3 months. We have found twenty-four technical indicators for Marvell Technology, which you can use to evaluate the volatility of the firm. Please verify Marvell Technology's insignificant Risk Adjusted Performance, mean deviation of 2.18, and Standard Deviation of 3.22 to check out if the risk estimate we provide is consistent with the expected return of 0.0573%.
Marvell |
Marvell Technology Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Marvell daily returns, and it is calculated using variance and standard deviation. We also use Marvell's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Marvell Technology volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Marvell Technology can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Marvell Technology at lower prices to lower their average cost per share. Similarly, when the prices of Marvell Technology's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Marvell Technology Market Sensitivity And Downside Risk
Marvell Technology's beta coefficient measures the volatility of Marvell stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Marvell stock's returns against your selected market. In other words, Marvell Technology's beta of -0.73 provides an investor with an approximation of how much risk Marvell Technology stock can potentially add to one of your existing portfolios. Marvell Technology exhibits very low volatility with skewness of -0.75 and kurtosis of 2.58. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Marvell Technology's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Marvell Technology's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Marvell Technology Demand TrendCheck current 90 days Marvell Technology correlation with market (NYSE Composite)Marvell Beta |
Marvell standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.83 |
It is essential to understand the difference between upside risk (as represented by Marvell Technology's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Marvell Technology's daily returns or price. Since the actual investment returns on holding a position in marvell stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Marvell Technology.
Marvell Technology Stock Volatility Analysis
Volatility refers to the frequency at which Marvell Technology stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Marvell Technology's price changes. Investors will then calculate the volatility of Marvell Technology's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Marvell Technology's volatility:
Historical Volatility
This type of stock volatility measures Marvell Technology's fluctuations based on previous trends. It's commonly used to predict Marvell Technology's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Marvell Technology's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Marvell Technology's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Marvell Technology Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Marvell Technology Projected Return Density Against Market
Assuming the 90 days trading horizon Marvell Technology has a beta of -0.7268 . This indicates as returns on the benchmark increase, returns on holding Marvell Technology are expected to decrease at a much lower rate. During a bear market, however, Marvell Technology is likely to outperform the market.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Marvell Technology or IT sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Marvell Technology's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Marvell stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Marvell Technology has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Marvell Technology Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Marvell Technology Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Marvell Technology is 4931.51. The daily returns are distributed with a variance of 7.98 and standard deviation of 2.83. The mean deviation of Marvell Technology is currently at 1.9. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.06 | |
β | Beta against NYSE Composite | -0.73 | |
σ | Overall volatility | 2.83 | |
Ir | Information ratio | -0.02 |
Marvell Technology Stock Return Volatility
Marvell Technology historical daily return volatility represents how much of Marvell Technology stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.8257% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6252% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Marvell Technology Investment Opportunity
Marvell Technology has a volatility of 2.83 and is 4.49 times more volatile than NYSE Composite. 25 percent of all equities and portfolios are less risky than Marvell Technology. You can use Marvell Technology to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Marvell Technology to be traded at 35.18 in 90 days.Good diversification
The correlation between Marvell Technology and NYA is -0.14 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Marvell Technology and NYA in the same portfolio, assuming nothing else is changed.
Marvell Technology Additional Risk Indicators
The analysis of Marvell Technology's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Marvell Technology's investment and either accepting that risk or mitigating it. Along with some common measures of Marvell Technology stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | (0) | |||
| Market Risk Adjusted Performance | 0.1044 | |||
| Mean Deviation | 2.18 | |||
| Coefficient Of Variation | (5,495) | |||
| Standard Deviation | 3.22 | |||
| Variance | 10.37 | |||
| Information Ratio | (0.02) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Marvell Technology Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Marvell Technology as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Marvell Technology's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Marvell Technology's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Marvell Technology.
Complementary Tools for Marvell Stock analysis
When running Marvell Technology's price analysis, check to measure Marvell Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Marvell Technology is operating at the current time. Most of Marvell Technology's value examination focuses on studying past and present price action to predict the probability of Marvell Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Marvell Technology's price. Additionally, you may evaluate how the addition of Marvell Technology to your portfolios can decrease your overall portfolio volatility.
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