Correlation Between Confluent and Marqeta
Can any of the company-specific risk be diversified away by investing in both Confluent 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 Confluent and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Confluent and Marqeta, you can compare the effects of market volatilities on Confluent 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 Confluent with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Confluent and Marqeta.
Diversification Opportunities for Confluent and Marqeta
Pay attention - limited upside
The 3 months correlation between Confluent and Marqeta is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Confluent and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Confluent 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 Confluent 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 Confluent i.e., Confluent and Marqeta go up and down completely randomly.
Pair Corralation between Confluent and Marqeta
Given the investment horizon of 90 days Confluent is expected to under-perform the Marqeta. In addition to that, Confluent is 1.28 times more volatile than Marqeta. It trades about -0.18 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 |
Confluent vs. Marqeta
Performance |
| Timeline |
| Confluent |
| Marqeta |
Confluent and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Confluent and Marqeta
The main advantage of trading using opposite Confluent and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Confluent 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.| Confluent vs. DigitalOcean Holdings | Confluent vs. Doximity | Confluent vs. Gitlab Inc | Confluent vs. Global E Online |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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