Correlation Between Marqeta and Zapata Computing
Can any of the company-specific risk be diversified away by investing in both Marqeta and Zapata Computing 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 Zapata Computing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marqeta and Zapata Computing Holdings, you can compare the effects of market volatilities on Marqeta and Zapata Computing 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 Zapata Computing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Zapata Computing.
Diversification Opportunities for Marqeta and Zapata Computing
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marqeta and Zapata is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Zapata Computing Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zapata Computing Holdings 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 Zapata Computing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zapata Computing Holdings has no effect on the direction of Marqeta i.e., Marqeta and Zapata Computing go up and down completely randomly.
Pair Corralation between Marqeta and Zapata Computing
Allowing for the 90-day total investment horizon Marqeta is expected to generate 0.34 times more return on investment than Zapata Computing. However, Marqeta is 2.93 times less risky than Zapata Computing. It trades about -0.03 of its potential returns per unit of risk. Zapata Computing Holdings is currently generating about -0.19 per unit of risk. If you would invest 544.00 in Marqeta on August 31, 2024 and sell it today you would lose (156.00) from holding Marqeta or give up 28.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Marqeta vs. Zapata Computing Holdings
Performance |
| Timeline |
| Marqeta |
| Zapata Computing Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marqeta and Zapata Computing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marqeta and Zapata Computing
The main advantage of trading using opposite Marqeta and Zapata Computing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Zapata Computing 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 Zapata Computing will offset losses from the drop in Zapata Computing's long position.The idea behind Marqeta and Zapata Computing Holdings 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.| Zapata Computing vs. Seadrill Limited | Zapata Computing vs. Tenaris SA ADR | Zapata Computing vs. Uber Technologies | Zapata Computing vs. Paysafe |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |