Correlation Between Marblegate Acquisition and Transportadora
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Transportadora 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 Transportadora 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 Transportadora de Gas, you can compare the effects of market volatilities on Marblegate Acquisition and Transportadora 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 Transportadora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Transportadora.
Diversification Opportunities for Marblegate Acquisition and Transportadora
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marblegate and Transportadora is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Transportadora de Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportadora de Gas 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 Transportadora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportadora de Gas has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Transportadora go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Transportadora
Assuming the 90 days horizon Marblegate Acquisition is expected to generate 21.6 times less return on investment than Transportadora. But when comparing it to its historical volatility, Marblegate Acquisition Corp is 1.38 times less risky than Transportadora. It trades about 0.02 of its potential returns per unit of risk. Transportadora de Gas is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,918 in Transportadora de Gas on September 2, 2024 and sell it today you would earn a total of 1,054 from holding Transportadora de Gas or generate 54.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Transportadora de Gas
Performance |
| Timeline |
| Marblegate Acquisition |
| Transportadora de Gas |
Marblegate Acquisition and Transportadora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Transportadora
The main advantage of trading using opposite Marblegate Acquisition and Transportadora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Transportadora 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 Transportadora will offset losses from the drop in Transportadora's long position.| Marblegate Acquisition vs. Videolocity International | Marblegate Acquisition vs. Southwest Gas Holdings | Marblegate Acquisition vs. Alliant Energy Corp | Marblegate Acquisition vs. Transportadora de Gas |
| Transportadora vs. Petroleo Brasileiro Petrobras | Transportadora vs. Ecopetrol SA ADR | Transportadora vs. Petrleo Brasileiro SA | Transportadora vs. Equinor ASA ADR |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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