Correlation Between Marqeta and Payoneer Global
Can any of the company-specific risk be diversified away by investing in both Marqeta and Payoneer Global 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 Payoneer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marqeta and Payoneer Global, you can compare the effects of market volatilities on Marqeta and Payoneer Global 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 Payoneer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Payoneer Global.
Diversification Opportunities for Marqeta and Payoneer Global
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marqeta and Payoneer is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global 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 Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of Marqeta i.e., Marqeta and Payoneer Global go up and down completely randomly.
Pair Corralation between Marqeta and Payoneer Global
Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the Payoneer Global. In addition to that, Marqeta is 1.3 times more volatile than Payoneer Global. It trades about 0.0 of its total potential returns per unit of risk. Payoneer Global is currently generating about 0.06 per unit of volatility. If you would invest 531.00 in Payoneer Global on August 24, 2024 and sell it today you would earn a total of 562.00 from holding Payoneer Global or generate 105.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marqeta vs. Payoneer Global
Performance |
| Timeline |
| Marqeta |
| Payoneer Global |
Marqeta and Payoneer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marqeta and Payoneer Global
The main advantage of trading using opposite Marqeta and Payoneer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Payoneer Global 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 Payoneer Global will offset losses from the drop in Payoneer Global's long position.The idea behind Marqeta and Payoneer Global 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.| Payoneer Global vs. SentinelOne | Payoneer Global vs. CyberArk Software | Payoneer Global vs. MongoDB | Payoneer Global vs. Appian Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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