Correlation Between DMY Squared and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both DMY Squared 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 DMY Squared and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between dMY Squared Technology and Marblegate Acquisition Corp, you can compare the effects of market volatilities on DMY Squared 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 DMY Squared with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of DMY Squared and Marblegate Acquisition.
Diversification Opportunities for DMY Squared and Marblegate Acquisition
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DMY and Marblegate is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding dMY Squared Technology and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and DMY Squared 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 dMY Squared Technology 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 DMY Squared i.e., DMY Squared and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between DMY Squared and Marblegate Acquisition
Given the investment horizon of 90 days DMY Squared is expected to generate 3.98 times less return on investment than Marblegate Acquisition. But when comparing it to its historical volatility, dMY Squared Technology is 1.32 times less risky than Marblegate Acquisition. It trades about 0.02 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,031 in Marblegate Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 82.00 from holding Marblegate Acquisition Corp or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
dMY Squared Technology vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| dMY Squared Technology |
| Marblegate Acquisition |
DMY Squared and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DMY Squared and Marblegate Acquisition
The main advantage of trading using opposite DMY Squared and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DMY Squared 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.| DMY Squared vs. PowerUp Acquisition Corp | DMY Squared vs. Aurora Innovation | DMY Squared vs. HUMANA INC | DMY Squared vs. Aquagold International |
| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. Hudson Acquisition I | Marblegate Acquisition vs. DP Cap Acquisition |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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