Correlation Between Marqeta and Tenable Holdings

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

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

Diversification Opportunities for Marqeta and Tenable Holdings

-0.4

Correlation Coefficient

Marqeta  Tenable Holdings

Very good diversification

The 3 months correlation between Marqeta and Tenable is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Tenable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenable Holdings 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 Tenable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenable Holdings has no effect on the direction of Marqeta i.e., Marqeta and Tenable Holdings go up and down completely randomly.

Pair Corralation between Marqeta and Tenable Holdings

Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the Tenable Holdings. In addition to that, Marqeta is 2.07 times more volatile than Tenable Holdings. It trades about -0.04 of its total potential returns per unit of risk. Tenable Holdings is currently generating about -0.01 per unit of volatility. If you would invest  4,606  in Tenable Holdings on September 24, 2024 and sell it today you would lose (487.00) from holding Tenable Holdings or give up 10.57% of portfolio value over 90 days.

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

Marqeta  vs.  Tenable Holdings

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 unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Tenable Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tenable Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Tenable Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Marqeta and Tenable Holdings

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

The idea behind Marqeta and Tenable Holdings 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.