Correlation Between Marqeta and Great Elm
Can any of the company-specific risk be diversified away by investing in both Marqeta and Great Elm 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 Great Elm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marqeta and Great Elm Capital, you can compare the effects of market volatilities on Marqeta and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Great Elm.
Diversification Opportunities for Marqeta and Great Elm
Excellent diversification
The 3 months correlation between Marqeta and Great is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of Marqeta i.e., Marqeta and Great Elm go up and down completely randomly.
Pair Corralation between Marqeta and Great Elm
Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the Great Elm. In addition to that, Marqeta is 8.16 times more volatile than Great Elm Capital. It trades about 0.0 of its total potential returns per unit of risk. Great Elm Capital is currently generating about 0.12 per unit of volatility. If you would invest 2,525 in Great Elm Capital on November 4, 2024 and sell it today you would earn a total of 12.00 from holding Great Elm Capital or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marqeta vs. Great Elm Capital
Performance |
| Timeline |
| Marqeta |
| Great Elm Capital |
Marqeta and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marqeta and Great Elm
The main advantage of trading using opposite Marqeta and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.The idea behind Marqeta and Great Elm Capital 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.| Great Elm vs. 51Talk Online Education | Great Elm vs. Tesla Inc | Great Elm vs. Scholastic | Great Elm vs. Youdao 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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