Correlation Between Marqeta and Sangoma Technologies
Can any of the company-specific risk be diversified away by investing in both Marqeta and Sangoma 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 Sangoma Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marqeta and Sangoma Technologies Corp, you can compare the effects of market volatilities on Marqeta and Sangoma 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 Sangoma Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Sangoma Technologies.
Diversification Opportunities for Marqeta and Sangoma Technologies
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marqeta and Sangoma is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies Corp 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 Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of Marqeta i.e., Marqeta and Sangoma Technologies go up and down completely randomly.
Pair Corralation between Marqeta and Sangoma Technologies
Allowing for the 90-day total investment horizon Marqeta is expected to generate 0.55 times more return on investment than Sangoma Technologies. However, Marqeta is 1.81 times less risky than Sangoma Technologies. It trades about 0.19 of its potential returns per unit of risk. Sangoma Technologies Corp is currently generating about 0.07 per unit of risk. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marqeta vs. Sangoma Technologies Corp
Performance |
| Timeline |
| Marqeta |
| Sangoma Technologies Corp |
Marqeta and Sangoma Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marqeta and Sangoma Technologies
The main advantage of trading using opposite Marqeta and Sangoma Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Sangoma 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 Sangoma Technologies will offset losses from the drop in Sangoma Technologies' long position.The idea behind Marqeta and Sangoma Technologies Corp 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.| Sangoma Technologies vs. Lesaka Technologies | Sangoma Technologies vs. Priority Technology Holdings | Sangoma Technologies vs. CSG Systems International | Sangoma Technologies vs. OneSpan |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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