Correlation Between Marqeta and BlackBerry

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

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

Diversification Opportunities for Marqeta and BlackBerry

-0.13

Correlation Coefficient

Marqeta  BlackBerry

Good diversification

The 3 months correlation between Marqeta and BlackBerry is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and BlackBerry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackBerry 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 BlackBerry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackBerry has no effect on the direction of Marqeta i.e., Marqeta and BlackBerry go up and down completely randomly.

Pair Corralation between Marqeta and BlackBerry

Allowing for the 90-day total investment horizon Marqeta is expected to generate 1.13 times more return on investment than BlackBerry. However, Marqeta is 1.13 times more volatile than BlackBerry. It trades about -0.02 of its potential returns per unit of risk. BlackBerry is currently generating about -0.03 per unit of risk. If you would invest  1,162  in Marqeta on January 29, 2024 and sell it today you would lose (621.00) from holding Marqeta or give up 53.44% of portfolio value over 90 days.

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

Marqeta  vs.  BlackBerry

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 unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in May 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

BlackBerry

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BlackBerry has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, BlackBerry is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Marqeta and BlackBerry

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

The idea behind Marqeta and BlackBerry 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.