Correlation Between SQ Old and Marqeta

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

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

Diversification Opportunities for SQ Old and Marqeta

0.0

Correlation Coefficient

SQ Old  Marqeta

Pay attention - limited upside

The 3 months correlation between SQ Old and Marqeta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SQ Old and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and SQ Old 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 SQ Old 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 SQ Old i.e., SQ Old and Marqeta go up and down completely randomly.

Pair Corralation between SQ Old and Marqeta

If you would invest (100.00) in SQ Old on November 27, 2024 and sell it today you would earn a total of  100.00  from holding SQ Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SQ Old  vs.  Marqeta

SQ Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days SQ Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, SQ Old is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Marqeta

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marqeta has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Marqeta is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with SQ Old and Marqeta

The main advantage of trading using opposite SQ Old and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQ Old 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 SQ Old 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.