Correlation Between F5 Networks and Marqeta
Can any of the company-specific risk be diversified away by investing in both F5 Networks 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 F5 Networks and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between F5 Networks and Marqeta, you can compare the effects of market volatilities on F5 Networks 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 F5 Networks with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of F5 Networks and Marqeta.
Diversification Opportunities for F5 Networks and Marqeta
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FFIV and Marqeta is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding F5 Networks and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and F5 Networks 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 F5 Networks 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 F5 Networks i.e., F5 Networks and Marqeta go up and down completely randomly.
Pair Corralation between F5 Networks and Marqeta
Given the investment horizon of 90 days F5 Networks is expected to generate 1.64 times more return on investment than Marqeta. However, F5 Networks is 1.64 times more volatile than Marqeta. It trades about 0.32 of its potential returns per unit of risk. Marqeta is currently generating about -0.03 per unit of risk. If you would invest 25,884 in F5 Networks on November 9, 2024 and sell it today you would earn a total of 4,860 from holding F5 Networks or generate 18.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
F5 Networks vs. Marqeta
Performance |
| Timeline |
| F5 Networks |
| Marqeta |
F5 Networks and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with F5 Networks and Marqeta
The main advantage of trading using opposite F5 Networks and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F5 Networks 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.| F5 Networks vs. VeriSign | F5 Networks vs. Check Point Software | F5 Networks vs. Qualys Inc | F5 Networks vs. CyberArk Software |
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..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets |