Correlation Between MongoDB and Marqeta

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

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

Diversification Opportunities for MongoDB and Marqeta

-0.54

Correlation Coefficient

MongoDB  Marqeta

Excellent diversification

The 3 months correlation between MongoDB and Marqeta is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding MongoDB and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and MongoDB 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 MongoDB 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 MongoDB i.e., MongoDB and Marqeta go up and down completely randomly.

Pair Corralation between MongoDB and Marqeta

Considering the 90-day investment horizon MongoDB is expected to generate 0.48 times more return on investment than Marqeta. However, MongoDB is 2.1 times less risky than Marqeta. It trades about 0.09 of its potential returns per unit of risk. Marqeta is currently generating about -0.03 per unit of risk. If you would invest  28,320  in MongoDB on September 1, 2024 and sell it today you would earn a total of  3,929  from holding MongoDB or generate 13.87% return on investment over 90 days.

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

MongoDB  vs.  Marqeta

MongoDB

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MongoDB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental indicators, MongoDB sustained solid returns over the last few months and may actually be approaching a breakup point.

Marqeta

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marqeta has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with MongoDB and Marqeta

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

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.