Correlation Between Marqeta and Five9

Can any of the company-specific risk be diversified away by investing in both Marqeta and Five9 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 Marqeta and Five9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Marqeta and Five9 Inc, you can compare the effects of market volatilities on Marqeta and Five9 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 Marqeta with a short position of Five9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Five9.

Diversification Opportunities for Marqeta and Five9

-0.76

Correlation Coefficient

Marqeta  Five9

Pay attention - limited upside

The 3 months correlation between Marqeta and Five9 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Five9 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Five9 Inc and Marqeta 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 Marqeta are associated (or correlated) with Five9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Five9 Inc has no effect on the direction of Marqeta i.e., Marqeta and Five9 go up and down completely randomly.

Pair Corralation between Marqeta and Five9

Allowing for the 90-day total investment horizon Marqeta is expected to generate 1.3 times more return on investment than Five9. However, Marqeta is 1.3 times more volatile than Five9 Inc. It trades about 0.09 of its potential returns per unit of risk. Five9 Inc is currently generating about -0.19 per unit of risk. If you would invest  377.00  in Marqeta on December 28, 2024 and sell it today you would earn a total of  62.00  from holding Marqeta or generate 16.45% return on investment over 90 days.

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

Marqeta  vs.  Five9 Inc

Marqeta

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Marqeta are ranked lower than 6 (%) 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.

Five9 Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Five9 Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Marqeta and Five9

The main advantage of trading using opposite Marqeta and Five9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Five9 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 Five9 will offset losses from the drop in Five9's long position.

The idea behind Marqeta and Five9 Inc 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.