Correlation Between Marblegate Acquisition and Home Plate
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Home Plate 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 Home Plate 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 Home Plate Acquisition, you can compare the effects of market volatilities on Marblegate Acquisition and Home Plate 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 Home Plate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Home Plate.
Diversification Opportunities for Marblegate Acquisition and Home Plate
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Marblegate and Home is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Home Plate Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Plate 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 Home Plate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Plate Acquisition has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Home Plate go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Home Plate
Assuming the 90 days horizon Marblegate Acquisition Corp is expected to generate 1.34 times more return on investment than Home Plate. However, Marblegate Acquisition is 1.34 times more volatile than Home Plate Acquisition. It trades about 0.03 of its potential returns per unit of risk. Home Plate Acquisition is currently generating about 0.02 per unit of risk. If you would invest 1,009 in Marblegate Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 116.00 from holding Marblegate Acquisition Corp or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.11% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Home Plate Acquisition
Performance |
| Timeline |
| Marblegate Acquisition |
| Home Plate Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marblegate Acquisition and Home Plate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Home Plate
The main advantage of trading using opposite Marblegate Acquisition and Home Plate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Home Plate 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 Home Plate will offset losses from the drop in Home Plate's long position.| Marblegate Acquisition vs. Mink Therapeutics | Marblegate Acquisition vs. Sellas Life Sciences | Marblegate Acquisition vs. Genfit | Marblegate Acquisition vs. Minerals Technologies |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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