Correlation Between Datasea and Marqeta

Can any of the company-specific risk be diversified away by investing in both Datasea 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 Datasea and Marqeta into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Datasea and Marqeta, you can compare the effects of market volatilities on Datasea 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 Datasea with a short position of Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datasea and Marqeta.

Diversification Opportunities for Datasea and Marqeta

-0.02

Correlation Coefficient

Datasea  Marqeta

Good diversification

The 3 months correlation between Datasea and Marqeta is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Datasea and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Datasea 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 Datasea 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 Datasea i.e., Datasea and Marqeta go up and down completely randomly.

Pair Corralation between Datasea and Marqeta

Given the investment horizon of 90 days Datasea is expected to generate 3.51 times less return on investment than Marqeta. But when comparing it to its historical volatility, Datasea is 1.04 times less risky than Marqeta. It trades about 0.02 of its potential returns per unit of risk. Marqeta is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  377.00  in Marqeta on December 28, 2024 and sell it today you would earn a total of  42.00  from holding Marqeta or generate 11.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Datasea  vs.  Marqeta

Datasea

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Datasea are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Datasea is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Marqeta

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Marqeta are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Marqeta reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Datasea and Marqeta

The main advantage of trading using opposite Datasea and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datasea 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.

The idea behind Datasea and Marqeta 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .