Correlation Between Global E and Marqeta
Can any of the company-specific risk be diversified away by investing in both Global E 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 Global E and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Marqeta, you can compare the effects of market volatilities on Global E 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 Global E with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Marqeta.
Diversification Opportunities for Global E and Marqeta
Excellent diversification
The 3 months correlation between Global and Marqeta is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Global E 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 Global E Online 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 Global E i.e., Global E and Marqeta go up and down completely randomly.
Pair Corralation between Global E and Marqeta
Given the investment horizon of 90 days Global E Online is expected to generate 0.33 times more return on investment than Marqeta. However, Global E Online is 3.07 times less risky than Marqeta. It trades about 0.28 of its potential returns per unit of risk. Marqeta is currently generating about -0.06 per unit of risk. If you would invest 3,930 in Global E Online on August 23, 2024 and sell it today you would earn a total of 856.00 from holding Global E Online or generate 21.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global E Online vs. Marqeta
Performance |
| Timeline |
| Global E Online |
| Marqeta |
Global E and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and Marqeta
The main advantage of trading using opposite Global E and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E 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.| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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