Correlation Between Marblegate Acquisition and HHG Capital
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and HHG 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 HHG 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 HHG Capital Corp, you can compare the effects of market volatilities on Marblegate Acquisition and HHG 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 HHG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and HHG Capital.
Diversification Opportunities for Marblegate Acquisition and HHG Capital
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marblegate and HHG is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and HHG Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HHG Capital Corp 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 HHG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HHG Capital Corp has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and HHG Capital go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and HHG Capital
Assuming the 90 days horizon Marblegate Acquisition Corp is expected to generate 0.96 times more return on investment than HHG Capital. However, Marblegate Acquisition Corp is 1.05 times less risky than HHG Capital. It trades about 0.03 of its potential returns per unit of risk. HHG Capital Corp is currently generating about 0.01 per unit of risk. If you would invest 1,039 in Marblegate Acquisition Corp on August 27, 2024 and sell it today you would earn a total of 86.00 from holding Marblegate Acquisition Corp or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.29% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. HHG Capital Corp
Performance |
| Timeline |
| Marblegate Acquisition |
| HHG Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marblegate Acquisition and HHG Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and HHG Capital
The main advantage of trading using opposite Marblegate Acquisition and HHG Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, HHG 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 HHG Capital will offset losses from the drop in HHG Capital's long position.| Marblegate Acquisition vs. GMS Inc | Marblegate Acquisition vs. Merit Medical Systems | Marblegate Acquisition vs. RadNet Inc | Marblegate Acquisition vs. BioNTech SE |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Directory Find actively traded commodities issued by global exchanges |