Correlation Between Ryvyl and Marqeta

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

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

Diversification Opportunities for Ryvyl and Marqeta

-0.47

Correlation Coefficient

Ryvyl  Marqeta

Very good diversification

The 3 months correlation between Ryvyl and Marqeta is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ryvyl Inc and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Ryvyl 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 Ryvyl Inc 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 Ryvyl i.e., Ryvyl and Marqeta go up and down completely randomly.

Pair Corralation between Ryvyl and Marqeta

Given the investment horizon of 90 days Ryvyl Inc is expected to under-perform the Marqeta. In addition to that, Ryvyl is 1.86 times more volatile than Marqeta. It trades about -0.03 of its total potential returns per unit of risk. Marqeta is currently generating about 0.1 per unit of volatility. If you would invest  365.00  in Marqeta on December 27, 2024 and sell it today you would earn a total of  74.00  from holding Marqeta or generate 20.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Ryvyl Inc  vs.  Marqeta

Ryvyl Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ryvyl Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Marqeta

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marqeta are ranked lower than 8 (%) 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.

Pair Trading with Ryvyl and Marqeta

The main advantage of trading using opposite Ryvyl and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryvyl 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 Ryvyl Inc 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.