Correlation Between Marqeta and Bandwidth
Can any of the company-specific risk be diversified away by investing in both Marqeta and Bandwidth 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 Bandwidth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marqeta and Bandwidth, you can compare the effects of market volatilities on Marqeta and Bandwidth 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 Bandwidth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Bandwidth.
Diversification Opportunities for Marqeta and Bandwidth
Excellent diversification
The 3 months correlation between Marqeta and Bandwidth is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Bandwidth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bandwidth 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 Bandwidth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bandwidth has no effect on the direction of Marqeta i.e., Marqeta and Bandwidth go up and down completely randomly.
Pair Corralation between Marqeta and Bandwidth
Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the Bandwidth. But the stock apears to be less risky and, when comparing its historical volatility, Marqeta is 1.26 times less risky than Bandwidth. The stock trades about -0.02 of its potential returns per unit of risk. The Bandwidth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,187 in Bandwidth on September 14, 2024 and sell it today you would earn a total of 684.00 from holding Bandwidth or generate 57.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marqeta vs. Bandwidth
Performance |
| Timeline |
| Marqeta |
| Bandwidth |
Marqeta and Bandwidth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marqeta and Bandwidth
The main advantage of trading using opposite Marqeta and Bandwidth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Bandwidth 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 Bandwidth will offset losses from the drop in Bandwidth's long position.| Marqeta vs. Evertec | Marqeta vs. Global Blue Group | Marqeta vs. NetScout Systems | Marqeta vs. CSG Systems International |
| Bandwidth vs. DigitalOcean Holdings | Bandwidth vs. Adyen NV | Bandwidth vs. Okta Inc | Bandwidth vs. Confluent |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |