Correlation Between Yext and Marqeta

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

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

Diversification Opportunities for Yext and Marqeta

-0.3

Correlation Coefficient

Yext  Marqeta

Very good diversification

The 3 months correlation between Yext and Marqeta is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Yext Inc and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta and Yext 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 Yext 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 Yext i.e., Yext and Marqeta go up and down completely randomly.

Pair Corralation between Yext and Marqeta

Given the investment horizon of 90 days Yext is expected to generate 4.18 times less return on investment than Marqeta. But when comparing it to its historical volatility, Yext Inc is 1.78 times less risky than Marqeta. It trades about 0.04 of its potential returns per unit of risk. Marqeta is currently generating about 0.1 of returns per unit of risk over similar time horizon. 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	Insignificant
Accuracy	98.36%
Values	Daily Returns

Yext Inc  vs.  Marqeta

Yext Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Yext Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Yext is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private 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 Yext and Marqeta

The main advantage of trading using opposite Yext and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yext 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 Yext 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.