Correlation Between Marqeta and Datasea

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

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

Diversification Opportunities for Marqeta and Datasea

-0.38

Correlation Coefficient

Marqeta  Datasea

Very good diversification

The 3 months correlation between Marqeta and Datasea is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Datasea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datasea 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 Datasea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datasea has no effect on the direction of Marqeta i.e., Marqeta and Datasea go up and down completely randomly.

Pair Corralation between Marqeta and Datasea

Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the Datasea. But the stock apears to be less risky and, when comparing its historical volatility, Marqeta is 1.29 times less risky than Datasea. The stock trades about -0.03 of its potential returns per unit of risk. The Datasea is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  206.00  in Datasea on September 1, 2024 and sell it today you would earn a total of  44.00  from holding Datasea or generate 21.36% return on investment over 90 days.

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

Marqeta  vs.  Datasea

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.

Datasea

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Datasea are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Datasea unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marqeta and Datasea

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

The idea behind Marqeta and Datasea 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 Global Correlations module to find global opportunities by holding instruments from different markets.