Correlation Between Marqeta and Nextplay Technologies
Can any of the company-specific risk be diversified away by investing in both Marqeta and Nextplay Technologies 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 Nextplay Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marqeta and Nextplay Technologies, you can compare the effects of market volatilities on Marqeta and Nextplay Technologies 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 Nextplay Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Nextplay Technologies.
Diversification Opportunities for Marqeta and Nextplay Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marqeta and Nextplay is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Nextplay Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplay Technologies 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 Nextplay Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplay Technologies has no effect on the direction of Marqeta i.e., Marqeta and Nextplay Technologies go up and down completely randomly.
Pair Corralation between Marqeta and Nextplay Technologies
If you would invest 373.00 in Marqeta on November 2, 2024 and sell it today you would earn a total of 23.00 from holding Marqeta or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Marqeta vs. Nextplay Technologies
Performance |
| Timeline |
| Marqeta |
| Nextplay Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marqeta and Nextplay Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marqeta and Nextplay Technologies
The main advantage of trading using opposite Marqeta and Nextplay Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Nextplay Technologies 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 Nextplay Technologies will offset losses from the drop in Nextplay Technologies' long position.The idea behind Marqeta and Nextplay Technologies 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.| Nextplay Technologies vs. Datasea | Nextplay Technologies vs. authID Inc | Nextplay Technologies vs. Priority Technology Holdings | Nextplay Technologies vs. Fuse Science |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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