Correlation Between Robinhood Markets and Marqeta
Can any of the company-specific risk be diversified away by investing in both Robinhood Markets 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 Robinhood Markets and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robinhood Markets and Marqeta, you can compare the effects of market volatilities on Robinhood Markets 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 Robinhood Markets with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinhood Markets and Marqeta.
Diversification Opportunities for Robinhood Markets and Marqeta
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Robinhood and Marqeta is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Robinhood Markets and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Robinhood Markets 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 Robinhood Markets 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 Robinhood Markets i.e., Robinhood Markets and Marqeta go up and down completely randomly.
Pair Corralation between Robinhood Markets and Marqeta
Given the investment horizon of 90 days Robinhood Markets is expected to generate 0.84 times more return on investment than Marqeta. However, Robinhood Markets is 1.19 times less risky than Marqeta. It trades about 0.13 of its potential returns per unit of risk. Marqeta is currently generating about -0.03 per unit of risk. If you would invest 2,128 in Robinhood Markets on September 1, 2024 and sell it today you would earn a total of 1,626 from holding Robinhood Markets or generate 76.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robinhood Markets vs. Marqeta
Performance |
| Timeline |
| Robinhood Markets |
| Marqeta |
Robinhood Markets and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinhood Markets and Marqeta
The main advantage of trading using opposite Robinhood Markets and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinhood Markets 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.| Robinhood Markets vs. Crowdstrike Holdings | Robinhood Markets vs. Palantir Technologies Class | Robinhood Markets vs. Cloudflare | Robinhood Markets vs. Adobe Systems Incorporated |
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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