Correlation Between Marblegate Acquisition and Malacca Straits
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Malacca Straits 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 Malacca Straits 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 Malacca Straits Acquisition, you can compare the effects of market volatilities on Marblegate Acquisition and Malacca Straits 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 Malacca Straits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Malacca Straits.
Diversification Opportunities for Marblegate Acquisition and Malacca Straits
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marblegate and Malacca is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Malacca Straits Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malacca Straits Acqu 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 Malacca Straits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malacca Straits Acqu has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Malacca Straits go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Malacca Straits
Given the investment horizon of 90 days Marblegate Acquisition is expected to generate 1.22 times less return on investment than Malacca Straits. But when comparing it to its historical volatility, Marblegate Acquisition Corp is 1.08 times less risky than Malacca Straits. It trades about 0.05 of its potential returns per unit of risk. Malacca Straits Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,020 in Malacca Straits Acquisition on September 3, 2024 and sell it today you would earn a total of 33.00 from holding Malacca Straits Acquisition or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 26.06% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Malacca Straits Acquisition
Performance |
| Timeline |
| Marblegate Acquisition |
| Malacca Straits Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marblegate Acquisition and Malacca Straits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Malacca Straits
The main advantage of trading using opposite Marblegate Acquisition and Malacca Straits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Malacca Straits 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 Malacca Straits will offset losses from the drop in Malacca Straits' long position.| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. SCOR PK | Marblegate Acquisition vs. Aquagold International |
| Malacca Straits vs. Hudson Acquisition I | Malacca Straits vs. Alpha One | Malacca Straits vs. Manaris Corp | Malacca Straits vs. Marblegate Acquisition Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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