Correlation Between Marqeta and U BX

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

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

Diversification Opportunities for Marqeta and U BX

-0.51

Correlation Coefficient

Marqeta  U BX

Excellent diversification

The 3 months correlation between Marqeta and UBXG is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and U BX Technology Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U BX Technology 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 U BX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U BX Technology has no effect on the direction of Marqeta i.e., Marqeta and U BX go up and down completely randomly.

Pair Corralation between Marqeta and U BX

Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the U BX. But the stock apears to be less risky and, when comparing its historical volatility, Marqeta is 20.46 times less risky than U BX. The stock trades about -0.04 of its potential returns per unit of risk. The U BX Technology Ltd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,190  in U BX Technology Ltd on September 21, 2024 and sell it today you would lose (2,869) from holding U BX Technology Ltd or give up 89.94% of portfolio value over 90 days.

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

Marqeta  vs.  U BX Technology Ltd

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.

U BX Technology

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in U BX Technology Ltd are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, U BX reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marqeta and U BX

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

The idea behind Marqeta and U BX Technology Ltd 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.