Correlation Between Marblegate Acquisition and Hennessy Capital
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Hennessy Capital 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 Hennessy Capital 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 Hennessy Capital Investment, you can compare the effects of market volatilities on Marblegate Acquisition and Hennessy Capital 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 Hennessy Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Hennessy Capital.
Diversification Opportunities for Marblegate Acquisition and Hennessy Capital
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marblegate and Hennessy is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Hennessy Capital Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hennessy Capital Inv 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 Hennessy Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hennessy Capital Inv has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Hennessy Capital go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Hennessy Capital
Assuming the 90 days horizon Marblegate Acquisition Corp is expected to generate 0.78 times more return on investment than Hennessy Capital. However, Marblegate Acquisition Corp is 1.28 times less risky than Hennessy Capital. It trades about 0.02 of its potential returns per unit of risk. Hennessy Capital Investment is currently generating about 0.02 per unit of risk. If you would invest 1,005 in Marblegate Acquisition Corp on November 5, 2024 and sell it today you would earn a total of 87.00 from holding Marblegate Acquisition Corp or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Hennessy Capital Investment
Performance |
| Timeline |
| Marblegate Acquisition |
| Hennessy Capital Inv |
Marblegate Acquisition and Hennessy Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Hennessy Capital
The main advantage of trading using opposite Marblegate Acquisition and Hennessy Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Hennessy Capital 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 Hennessy Capital will offset losses from the drop in Hennessy Capital's long position.| Marblegate Acquisition vs. Seadrill Limited | Marblegate Acquisition vs. Drilling Tools International | Marblegate Acquisition vs. Nabors Industries | Marblegate Acquisition vs. Dominos Pizza Common |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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