Correlation Between Marblegate Acquisition and Latamgrowth SPAC
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Latamgrowth SPAC 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 Latamgrowth SPAC 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 Latamgrowth SPAC Unit, you can compare the effects of market volatilities on Marblegate Acquisition and Latamgrowth SPAC 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 Latamgrowth SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Latamgrowth SPAC.
Diversification Opportunities for Marblegate Acquisition and Latamgrowth SPAC
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marblegate and Latamgrowth is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Latamgrowth SPAC Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Latamgrowth SPAC Unit 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 Latamgrowth SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Latamgrowth SPAC Unit has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Latamgrowth SPAC go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Latamgrowth SPAC
Assuming the 90 days horizon Marblegate Acquisition Corp is expected to generate 0.02 times more return on investment than Latamgrowth SPAC. However, Marblegate Acquisition Corp is 51.96 times less risky than Latamgrowth SPAC. It trades about -0.22 of its potential returns per unit of risk. Latamgrowth SPAC Unit is currently generating about -0.16 per unit of risk. If you would invest 1,101 in Marblegate Acquisition Corp on November 3, 2024 and sell it today you would lose (9.00) from holding Marblegate Acquisition Corp or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Latamgrowth SPAC Unit
Performance |
| Timeline |
| Marblegate Acquisition |
| Latamgrowth SPAC Unit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Marblegate Acquisition and Latamgrowth SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Latamgrowth SPAC
The main advantage of trading using opposite Marblegate Acquisition and Latamgrowth SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Latamgrowth SPAC 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 Latamgrowth SPAC will offset losses from the drop in Latamgrowth SPAC's long position.| Marblegate Acquisition vs. Playtika Holding Corp | Marblegate Acquisition vs. United Parks Resorts | Marblegate Acquisition vs. Data3 Limited | Marblegate Acquisition vs. Emerson Radio |
| Latamgrowth SPAC vs. RH | Latamgrowth SPAC vs. Proficient Auto Logistics, | Latamgrowth SPAC vs. Lindblad Expeditions Holdings | Latamgrowth SPAC vs. KNOT Offshore Partners |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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