Correlation Between Nutanix and Marqeta
Can any of the company-specific risk be diversified away by investing in both Nutanix 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 Nutanix and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nutanix and Marqeta, you can compare the effects of market volatilities on Nutanix 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 Nutanix with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nutanix and Marqeta.
Diversification Opportunities for Nutanix and Marqeta
Very good diversification
The 3 months correlation between Nutanix and Marqeta is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nutanix and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Nutanix 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 Nutanix 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 Nutanix i.e., Nutanix and Marqeta go up and down completely randomly.
Pair Corralation between Nutanix and Marqeta
Given the investment horizon of 90 days Nutanix is expected to generate 2.19 times less return on investment than Marqeta. But when comparing it to its historical volatility, Nutanix is 1.05 times less risky than Marqeta. It trades about 0.05 of its potential returns per unit of risk. Marqeta is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 367.00 in Marqeta on October 23, 2024 and sell it today you would earn a total of 12.00 from holding Marqeta or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nutanix vs. Marqeta
Performance |
| Timeline |
| Nutanix |
| Marqeta |
Nutanix and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nutanix and Marqeta
The main advantage of trading using opposite Nutanix and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nutanix 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.| Nutanix vs. Palo Alto Networks | Nutanix vs. Uipath Inc | Nutanix vs. Zscaler | Nutanix vs. Crowdstrike Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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