Correlation Between Associated Capital and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Marblegate Acquisition 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 Associated Capital and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Associated Capital and Marblegate Acquisition 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 Associated Capital with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Marblegate Acquisition.
Diversification Opportunities for Associated Capital and Marblegate Acquisition
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Associated and Marblegate is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Associated Capital 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 Associated Capital Group are associated (or correlated) with Marblegate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marblegate Acquisition has no effect on the direction of Associated Capital i.e., Associated Capital and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between Associated Capital and Marblegate Acquisition
Allowing for the 90-day total investment horizon Associated Capital Group is expected to under-perform the Marblegate Acquisition. But the stock apears to be less risky and, when comparing its historical volatility, Associated Capital Group is 13.17 times less risky than Marblegate Acquisition. The stock trades about 0.0 of its potential returns per unit of risk. The Marblegate Acquisition Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Marblegate Acquisition Corp on September 5, 2024 and sell it today you would earn a total of 0.70 from holding Marblegate Acquisition Corp or generate 28.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Associated Capital Group vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| Associated Capital |
| Marblegate Acquisition |
Associated Capital and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Marblegate Acquisition
The main advantage of trading using opposite Associated Capital and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Marblegate Acquisition 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 Marblegate Acquisition will offset losses from the drop in Marblegate Acquisition's long position.| Associated Capital vs. Visa Class A | Associated Capital vs. Diamond Hill Investment | Associated Capital vs. Deutsche Bank AG | Associated Capital vs. Dynex Capital |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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