Correlation Between Marqeta and Adyen NV
Can any of the company-specific risk be diversified away by investing in both Marqeta and Adyen NV 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 Marqeta and Adyen NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marqeta and Adyen NV, you can compare the effects of market volatilities on Marqeta and Adyen NV 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 Marqeta with a short position of Adyen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Adyen NV.
Diversification Opportunities for Marqeta and Adyen NV
Very weak diversification
The 3 months correlation between Marqeta and Adyen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Adyen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adyen NV and Marqeta 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 Marqeta are associated (or correlated) with Adyen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adyen NV has no effect on the direction of Marqeta i.e., Marqeta and Adyen NV go up and down completely randomly.
Pair Corralation between Marqeta and Adyen NV
Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the Adyen NV. In addition to that, Marqeta is 1.51 times more volatile than Adyen NV. It trades about -0.02 of its total potential returns per unit of risk. Adyen NV is currently generating about 0.06 per unit of volatility. If you would invest 1,137 in Adyen NV on September 14, 2024 and sell it today you would earn a total of 433.00 from holding Adyen NV or generate 38.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Marqeta vs. Adyen NV
Performance |
| Timeline |
| Marqeta |
| Adyen NV |
Marqeta and Adyen NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marqeta and Adyen NV
The main advantage of trading using opposite Marqeta and Adyen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Adyen NV 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 Adyen NV will offset losses from the drop in Adyen NV's long position.| Marqeta vs. Evertec | Marqeta vs. Global Blue Group | Marqeta vs. NetScout Systems | Marqeta vs. CSG Systems International |
| Adyen NV vs. Confluent | Adyen NV vs. Kinsale Capital Group | Adyen NV vs. DigitalOcean Holdings | Adyen NV vs. Walker Dunlop |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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