Correlation Between Marblegate Acquisition and Distoken Acquisition
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Distoken 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 Marblegate Acquisition and Distoken Acquisition 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 Distoken Acquisition, you can compare the effects of market volatilities on Marblegate Acquisition and Distoken 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 Marblegate Acquisition with a short position of Distoken Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Distoken Acquisition.
Diversification Opportunities for Marblegate Acquisition and Distoken Acquisition
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marblegate and Distoken is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Distoken Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Distoken Acquisition 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 Distoken Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Distoken Acquisition has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Distoken Acquisition go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Distoken Acquisition
Given the investment horizon of 90 days Marblegate Acquisition is expected to generate 58.07 times less return on investment than Distoken Acquisition. But when comparing it to its historical volatility, Marblegate Acquisition Corp is 15.99 times less risky than Distoken Acquisition. It trades about 0.01 of its potential returns per unit of risk. Distoken Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Distoken Acquisition on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Distoken Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 18.75% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Distoken Acquisition
Performance |
| Timeline |
| Marblegate Acquisition |
| Distoken Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Marblegate Acquisition and Distoken Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Distoken Acquisition
The main advantage of trading using opposite Marblegate Acquisition and Distoken Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Distoken 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 Distoken Acquisition will offset losses from the drop in Distoken Acquisition's long position.| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. SCOR PK | Marblegate Acquisition vs. Aquagold International |
| Distoken Acquisition vs. Marblegate Acquisition Corp | Distoken Acquisition vs. Alpha One | Distoken Acquisition vs. Manaris Corp | Distoken Acquisition 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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