Correlation Between Blackstone and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Marblegate Acquisition.
Diversification Opportunities for Blackstone and Marblegate Acquisition
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Marblegate is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone 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 Blackstone 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 Blackstone 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 Blackstone i.e., Blackstone and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between Blackstone and Marblegate Acquisition
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 4.64 times more return on investment than Marblegate Acquisition. However, Blackstone is 4.64 times more volatile than Marblegate Acquisition Corp. It trades about 0.1 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.04 per unit of risk. If you would invest 7,718 in Blackstone Group on August 26, 2024 and sell it today you would earn a total of 11,683 from holding Blackstone Group or generate 151.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| Blackstone Group |
| Marblegate Acquisition |
Blackstone and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Marblegate Acquisition
The main advantage of trading using opposite Blackstone and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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