Correlation Between Ford and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both Ford 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 Ford and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Ford 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 Ford with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Marblegate Acquisition.
Diversification Opportunities for Ford and Marblegate Acquisition
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ford and Marblegate is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Ford 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 Ford Motor 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 Ford i.e., Ford and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between Ford and Marblegate Acquisition
Taking into account the 90-day investment horizon Ford Motor is expected to generate 5.21 times more return on investment than Marblegate Acquisition. However, Ford is 5.21 times more volatile than Marblegate Acquisition Corp. It trades about 0.01 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 1,132 in Ford Motor on August 26, 2024 and sell it today you would lose (14.00) from holding Ford Motor or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| Ford Motor |
| Marblegate Acquisition |
Ford and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Marblegate Acquisition
The main advantage of trading using opposite Ford and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.The idea behind Ford Motor and Marblegate Acquisition Corp 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.| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |