Correlation Between Evergreen Corp and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both Evergreen Corp 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 Evergreen Corp and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evergreen Corp and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Evergreen Corp 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 Evergreen Corp with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Corp and Marblegate Acquisition.
Diversification Opportunities for Evergreen Corp and Marblegate Acquisition
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evergreen and Marblegate is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Corp and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Evergreen Corp 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 Evergreen Corp 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 Evergreen Corp i.e., Evergreen Corp and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between Evergreen Corp and Marblegate Acquisition
Given the investment horizon of 90 days Evergreen Corp is expected to generate 0.4 times more return on investment than Marblegate Acquisition. However, Evergreen Corp is 2.5 times less risky than Marblegate Acquisition. It trades about 0.16 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.05 per unit of risk. If you would invest 1,024 in Evergreen Corp on September 3, 2024 and sell it today you would earn a total of 157.00 from holding Evergreen Corp or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Corp vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| Evergreen Corp |
| Marblegate Acquisition |
Evergreen Corp and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Corp and Marblegate Acquisition
The main advantage of trading using opposite Evergreen Corp and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Corp 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.| Evergreen Corp vs. Marblegate Acquisition Corp | Evergreen Corp vs. Alpha One | Evergreen Corp vs. Manaris Corp | Evergreen Corp vs. SCOR PK |
| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. SCOR PK | Marblegate Acquisition vs. Aquagold International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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