Correlation Between Marblegate Acquisition and Global Partner
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Global Partner 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 Global Partner 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 Global Partner Acquisition, you can compare the effects of market volatilities on Marblegate Acquisition and Global Partner 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 Global Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Global Partner.
Diversification Opportunities for Marblegate Acquisition and Global Partner
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Marblegate and Global is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Global Partner Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partner Acqui 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 Global Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partner Acqui has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Global Partner go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Global Partner
If you would invest 3.00 in Marblegate Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 0.20 from holding Marblegate Acquisition Corp or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Global Partner Acquisition
Performance |
| Timeline |
| Marblegate Acquisition |
| Global Partner Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marblegate Acquisition and Global Partner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Global Partner
The main advantage of trading using opposite Marblegate Acquisition and Global Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Global Partner 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 Global Partner will offset losses from the drop in Global Partner's long position.The idea behind Marblegate Acquisition Corp and Global Partner 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |