Correlation Between Marqeta and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both Marqeta and CyberArk Software 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 CyberArk Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marqeta and CyberArk Software, you can compare the effects of market volatilities on Marqeta and CyberArk Software 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 CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and CyberArk Software.
Diversification Opportunities for Marqeta and CyberArk Software
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marqeta and CyberArk is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software 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 CyberArk Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberArk Software has no effect on the direction of Marqeta i.e., Marqeta and CyberArk Software go up and down completely randomly.
Pair Corralation between Marqeta and CyberArk Software
Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the CyberArk Software. In addition to that, Marqeta is 4.77 times more volatile than CyberArk Software. It trades about -0.1 of its total potential returns per unit of risk. CyberArk Software is currently generating about 0.24 per unit of volatility. If you would invest 28,775 in CyberArk Software on August 27, 2024 and sell it today you would earn a total of 3,198 from holding CyberArk Software or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marqeta vs. CyberArk Software
Performance |
| Timeline |
| Marqeta |
| CyberArk Software |
Marqeta and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marqeta and CyberArk Software
The main advantage of trading using opposite Marqeta and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, CyberArk Software 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 CyberArk Software will offset losses from the drop in CyberArk Software's long position.The idea behind Marqeta and CyberArk Software pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CyberArk Software vs. GigaCloud Technology Class | CyberArk Software vs. Arqit Quantum | CyberArk Software vs. Cemtrex | CyberArk Software vs. Rapid7 Inc |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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