Correlation Between Affirm Holdings and Marqeta
Can any of the company-specific risk be diversified away by investing in both Affirm Holdings and Marqeta 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 Affirm Holdings and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affirm Holdings and Marqeta, you can compare the effects of market volatilities on Affirm Holdings and Marqeta 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 Affirm Holdings with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affirm Holdings and Marqeta.
Diversification Opportunities for Affirm Holdings and Marqeta
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Affirm and Marqeta is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Affirm Holdings and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Affirm Holdings 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 Affirm Holdings are associated (or correlated) with Marqeta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marqeta has no effect on the direction of Affirm Holdings i.e., Affirm Holdings and Marqeta go up and down completely randomly.
Pair Corralation between Affirm Holdings and Marqeta
Given the investment horizon of 90 days Affirm Holdings is expected to under-perform the Marqeta. In addition to that, Affirm Holdings is 1.82 times more volatile than Marqeta. It trades about -0.2 of its total potential returns per unit of risk. Marqeta is currently generating about 0.1 per unit of volatility. If you would invest 367.00 in Marqeta on October 23, 2024 and sell it today you would earn a total of 12.00 from holding Marqeta or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affirm Holdings vs. Marqeta
Performance |
| Timeline |
| Affirm Holdings |
| Marqeta |
Affirm Holdings and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affirm Holdings and Marqeta
The main advantage of trading using opposite Affirm Holdings and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affirm Holdings position performs unexpectedly, Marqeta 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 Marqeta will offset losses from the drop in Marqeta's long position.| Affirm Holdings vs. Upstart Holdings | Affirm Holdings vs. SoFi Technologies | Affirm Holdings vs. Roblox Corp | Affirm Holdings vs. Robinhood Markets |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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