Correlation Between Financial Strategies and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both Financial Strategies 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 Financial Strategies and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financial Strategies Acquisition and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Financial Strategies 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 Financial Strategies with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Strategies and Marblegate Acquisition.
Diversification Opportunities for Financial Strategies and Marblegate Acquisition
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Financial and Marblegate is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Financial Strategies Acquisiti and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Financial Strategies 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 Financial Strategies Acquisition 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 Financial Strategies i.e., Financial Strategies and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between Financial Strategies and Marblegate Acquisition
If you would invest 3.00 in Marblegate Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 0.20 from holding Marblegate Acquisition Corp or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Financial Strategies Acquisiti vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| Financial Strategies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Marblegate Acquisition |
Financial Strategies and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Strategies and Marblegate Acquisition
The main advantage of trading using opposite Financial Strategies and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Strategies 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.| Financial Strategies vs. Marblegate Acquisition Corp | Financial Strategies vs. Globalink Investment Warrants |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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