Correlation Between Marblegate Acquisition and Agriculture Natural
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Agriculture Natural 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 Marblegate Acquisition and Agriculture Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marblegate Acquisition Corp and Agriculture Natural Solutions, you can compare the effects of market volatilities on Marblegate Acquisition and Agriculture Natural 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 Marblegate Acquisition with a short position of Agriculture Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Agriculture Natural.
Diversification Opportunities for Marblegate Acquisition and Agriculture Natural
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marblegate and Agriculture is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Agriculture Natural Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agriculture Natural and Marblegate Acquisition 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 Marblegate Acquisition Corp are associated (or correlated) with Agriculture Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agriculture Natural has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Agriculture Natural go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Agriculture Natural
Given the investment horizon of 90 days Marblegate Acquisition Corp is expected to generate 0.51 times more return on investment than Agriculture Natural. However, Marblegate Acquisition Corp is 1.98 times less risky than Agriculture Natural. It trades about 0.08 of its potential returns per unit of risk. Agriculture Natural Solutions is currently generating about 0.02 per unit of risk. If you would invest 1,040 in Marblegate Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 73.00 from holding Marblegate Acquisition Corp or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Agriculture Natural Solutions
Performance |
| Timeline |
| Marblegate Acquisition |
| Agriculture Natural |
Marblegate Acquisition and Agriculture Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Agriculture Natural
The main advantage of trading using opposite Marblegate Acquisition and Agriculture Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Agriculture Natural 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 Agriculture Natural will offset losses from the drop in Agriculture Natural's long position.| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. SCOR PK | Marblegate Acquisition vs. Aquagold International |
| Agriculture Natural vs. Marblegate Acquisition Corp | Agriculture Natural vs. Alpha One | Agriculture Natural vs. Manaris Corp | Agriculture Natural vs. SCOR PK |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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