Correlation Between Marblegate Acquisition and Liberty Resources
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Liberty Resources 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 Liberty Resources 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 Liberty Resources Acquisition, you can compare the effects of market volatilities on Marblegate Acquisition and Liberty Resources 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 Liberty Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Liberty Resources.
Diversification Opportunities for Marblegate Acquisition and Liberty Resources
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marblegate and Liberty is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Liberty Resources Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Resources 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 Liberty Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Resources has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Liberty Resources go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Liberty Resources
Assuming the 90 days horizon Marblegate Acquisition Corp is expected to generate 1.37 times more return on investment than Liberty Resources. However, Marblegate Acquisition is 1.37 times more volatile than Liberty Resources Acquisition. It trades about 0.08 of its potential returns per unit of risk. Liberty Resources Acquisition is currently generating about 0.05 per unit of risk. If you would invest 5.00 in Marblegate Acquisition Corp on August 30, 2024 and sell it today you would lose (1.80) from holding Marblegate Acquisition Corp or give up 36.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.91% |
| Values | Daily Returns |
Marblegate Acquisition Corp vs. Liberty Resources Acquisition
Performance |
| Timeline |
| Marblegate Acquisition |
| Liberty Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marblegate Acquisition and Liberty Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marblegate Acquisition and Liberty Resources
The main advantage of trading using opposite Marblegate Acquisition and Liberty Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Liberty Resources 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 Liberty Resources will offset losses from the drop in Liberty Resources' long position.The idea behind Marblegate Acquisition Corp and Liberty Resources 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.| Liberty Resources vs. Nike Inc | Liberty Resources vs. Steven Madden | Liberty Resources vs. Stepstone Group | Liberty Resources vs. Duluth Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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