Correlation Between Marqeta and Mogo
Can any of the company-specific risk be diversified away by investing in both Marqeta and Mogo 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 Mogo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marqeta and Mogo Inc, you can compare the effects of market volatilities on Marqeta and Mogo 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 Mogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Mogo.
Diversification Opportunities for Marqeta and Mogo
Excellent diversification
The 3 months correlation between Marqeta and Mogo is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc 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 Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of Marqeta i.e., Marqeta and Mogo go up and down completely randomly.
Pair Corralation between Marqeta and Mogo
Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the Mogo. But the stock apears to be less risky and, when comparing its historical volatility, Marqeta is 1.92 times less risky than Mogo. The stock trades about 0.0 of its potential returns per unit of risk. The Mogo Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 131.00 in Mogo Inc on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Mogo Inc or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marqeta vs. Mogo Inc
Performance |
| Timeline |
| Marqeta |
| Mogo Inc |
Marqeta and Mogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marqeta and Mogo
The main advantage of trading using opposite Marqeta and Mogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Mogo 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 Mogo will offset losses from the drop in Mogo's long position.The idea behind Marqeta and Mogo Inc 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.| Mogo vs. Katapult Holdings Equity | Mogo vs. International Money Express | Mogo vs. Bakkt Holdings | Mogo vs. Kaltura |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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