Correlation Between Nuvei Corp and Marqeta

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

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

Diversification Opportunities for Nuvei Corp and Marqeta

-0.63

Correlation Coefficient

Nuvei Corp  Marqeta

Excellent diversification

The 3 months correlation between Nuvei and Marqeta is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nuvei Corp and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Nuvei Corp 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 Nuvei Corp 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 Nuvei Corp i.e., Nuvei Corp and Marqeta go up and down completely randomly.

Pair Corralation between Nuvei Corp and Marqeta

Given the investment horizon of 90 days Nuvei Corp is expected to generate 0.92 times more return on investment than Marqeta. However, Nuvei Corp is 1.08 times less risky than Marqeta. It trades about 0.04 of its potential returns per unit of risk. Marqeta is currently generating about 0.0 per unit of risk. If you would invest  2,483  in Nuvei Corp on September 19, 2024 and sell it today you would earn a total of  916.00  from holding Nuvei Corp or generate 36.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.97%
Values	Daily Returns

Nuvei Corp  vs.  Marqeta

Nuvei Corp

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Nuvei Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Nuvei Corp is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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.

Pair Trading with Nuvei Corp and Marqeta

The main advantage of trading using opposite Nuvei Corp and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvei Corp 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 Nuvei Corp 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.