Correlation Between Telos Corp and Marqeta
Can any of the company-specific risk be diversified away by investing in both Telos Corp 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 Telos Corp and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telos Corp and Marqeta, you can compare the effects of market volatilities on Telos Corp 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 Telos Corp with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telos Corp and Marqeta.
Diversification Opportunities for Telos Corp and Marqeta
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Telos and Marqeta is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Telos Corp and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Telos Corp 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 Telos Corp 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 Telos Corp i.e., Telos Corp and Marqeta go up and down completely randomly.
Pair Corralation between Telos Corp and Marqeta
Considering the 90-day investment horizon Telos Corp is expected to generate 0.51 times more return on investment than Marqeta. However, Telos Corp is 1.94 times less risky than Marqeta. It trades about -0.06 of its potential returns per unit of risk. Marqeta is currently generating about -0.11 per unit of risk. If you would invest 373.00 in Telos Corp on August 31, 2024 and sell it today you would lose (33.00) from holding Telos Corp or give up 8.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telos Corp vs. Marqeta
Performance |
| Timeline |
| Telos Corp |
| Marqeta |
Telos Corp and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telos Corp and Marqeta
The main advantage of trading using opposite Telos Corp and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telos Corp 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.| Telos Corp vs. GigaCloud Technology Class | Telos Corp vs. Arqit Quantum | Telos Corp vs. Cemtrex | Telos Corp vs. Rapid7 Inc |
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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