Correlation Between Marqeta and Telos Corp

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

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

Diversification Opportunities for Marqeta and Telos Corp

-0.01

Correlation Coefficient

Marqeta  Telos Corp

Good diversification

The 3 months correlation between Marqeta and Telos is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Telos Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telos Corp 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 Telos Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telos Corp has no effect on the direction of Marqeta i.e., Marqeta and Telos Corp go up and down completely randomly.

Pair Corralation between Marqeta and Telos Corp

Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the Telos Corp. In addition to that, Marqeta is 1.61 times more volatile than Telos Corp. It trades about -0.02 of its total potential returns per unit of risk. Telos Corp is currently generating about 0.03 per unit of volatility. If you would invest  335.00  in Telos Corp on September 15, 2024 and sell it today you would earn a total of  12.00  from holding Telos Corp or generate 3.58% return on investment over 90 days.

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

Marqeta  vs.  Telos Corp

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.

Telos Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Telos Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Telos Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Marqeta and Telos Corp

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

The idea behind Marqeta and Telos Corp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.