Correlation Between NetScout Systems and Marqeta
Can any of the company-specific risk be diversified away by investing in both NetScout Systems and Marqeta 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 NetScout Systems and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NetScout Systems and Marqeta, you can compare the effects of market volatilities on NetScout Systems and Marqeta 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 NetScout Systems with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetScout Systems and Marqeta.
Diversification Opportunities for NetScout Systems and Marqeta
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NetScout and Marqeta is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding NetScout Systems and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and NetScout Systems 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 NetScout Systems are associated (or correlated) with Marqeta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marqeta has no effect on the direction of NetScout Systems i.e., NetScout Systems and Marqeta go up and down completely randomly.
Pair Corralation between NetScout Systems and Marqeta
Given the investment horizon of 90 days NetScout Systems is expected to generate 0.57 times more return on investment than Marqeta. However, NetScout Systems is 1.75 times less risky than Marqeta. It trades about 0.02 of its potential returns per unit of risk. Marqeta is currently generating about -0.02 per unit of risk. If you would invest 2,068 in NetScout Systems on September 14, 2024 and sell it today you would earn a total of 168.00 from holding NetScout Systems or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NetScout Systems vs. Marqeta
Performance |
| Timeline |
| NetScout Systems |
| Marqeta |
NetScout Systems and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NetScout Systems and Marqeta
The main advantage of trading using opposite NetScout Systems and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetScout Systems position performs unexpectedly, Marqeta 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 Marqeta will offset losses from the drop in Marqeta's long position.| NetScout Systems vs. Progress Software | NetScout Systems vs. CommVault Systems | NetScout Systems vs. Blackbaud | NetScout Systems vs. ACI Worldwide |
| Marqeta vs. Evertec | Marqeta vs. Global Blue Group | Marqeta vs. NetScout Systems | Marqeta vs. CSG Systems International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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