Correlation Between Marblegate Acquisition and Fat Projects
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Fat Projects 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 Fat Projects 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 Fat Projects Acquisition, you can compare the effects of market volatilities on Marblegate Acquisition and Fat Projects 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 Fat Projects. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Fat Projects.
Diversification Opportunities for Marblegate Acquisition and Fat Projects
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marblegate and Fat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Fat Projects Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fat Projects 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 Fat Projects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fat Projects Acquisition has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Fat Projects go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Fat Projects
If you would invest 3.00 in Marblegate Acquisition Corp on November 28, 2024 and sell it today you would earn a total of 4.00 from holding Marblegate Acquisition Corp or generate 133.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Fat Projects Acquisition
Performance |
| Timeline |
| Marblegate Acquisition |
| Fat Projects Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Marblegate Acquisition and Fat Projects Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Fat Projects
The main advantage of trading using opposite Marblegate Acquisition and Fat Projects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Fat Projects 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 Fat Projects will offset losses from the drop in Fat Projects' long position.The idea behind Marblegate Acquisition Corp and Fat Projects Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |