Correlation Between Flywire Corp and Marqeta
Can any of the company-specific risk be diversified away by investing in both Flywire Corp 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 Flywire Corp and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flywire Corp and Marqeta, you can compare the effects of market volatilities on Flywire Corp 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 Flywire Corp with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flywire Corp and Marqeta.
Diversification Opportunities for Flywire Corp and Marqeta
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flywire and Marqeta is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Flywire Corp and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Flywire Corp 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 Flywire Corp 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 Flywire Corp i.e., Flywire Corp and Marqeta go up and down completely randomly.
Pair Corralation between Flywire Corp and Marqeta
Given the investment horizon of 90 days Flywire Corp is expected to generate 0.41 times more return on investment than Marqeta. However, Flywire Corp is 2.44 times less risky than Marqeta. It trades about 0.35 of its potential returns per unit of risk. Marqeta is currently generating about -0.1 per unit of risk. If you would invest 1,717 in Flywire Corp on August 28, 2024 and sell it today you would earn a total of 578.00 from holding Flywire Corp or generate 33.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flywire Corp vs. Marqeta
Performance |
| Timeline |
| Flywire Corp |
| Marqeta |
Flywire Corp and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flywire Corp and Marqeta
The main advantage of trading using opposite Flywire Corp and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flywire Corp 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.| Flywire Corp vs. SentinelOne | Flywire Corp vs. BlackBerry | Flywire Corp vs. Global Blue Group | Flywire Corp vs. Aurora Mobile |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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