Correlation Between GigaCloud Technology and Marqeta
Can any of the company-specific risk be diversified away by investing in both GigaCloud Technology 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 GigaCloud Technology and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaCloud Technology Class and Marqeta, you can compare the effects of market volatilities on GigaCloud Technology 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 GigaCloud Technology with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaCloud Technology and Marqeta.
Diversification Opportunities for GigaCloud Technology and Marqeta
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GigaCloud and Marqeta is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GigaCloud Technology Class and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and GigaCloud Technology 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 GigaCloud Technology Class 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 GigaCloud Technology i.e., GigaCloud Technology and Marqeta go up and down completely randomly.
Pair Corralation between GigaCloud Technology and Marqeta
Considering the 90-day investment horizon GigaCloud Technology Class is expected to generate 0.64 times more return on investment than Marqeta. However, GigaCloud Technology Class is 1.56 times less risky than Marqeta. It trades about 0.04 of its potential returns per unit of risk. Marqeta is currently generating about -0.11 per unit of risk. If you would invest 2,450 in GigaCloud Technology Class on August 31, 2024 and sell it today you would earn a total of 20.00 from holding GigaCloud Technology Class or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GigaCloud Technology Class vs. Marqeta
Performance |
| Timeline |
| GigaCloud Technology |
| Marqeta |
GigaCloud Technology and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaCloud Technology and Marqeta
The main advantage of trading using opposite GigaCloud Technology and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaCloud Technology 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.| GigaCloud Technology vs. Arqit Quantum | GigaCloud Technology vs. Telos Corp | GigaCloud Technology vs. Cemtrex | GigaCloud Technology vs. Alarum Technologies |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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