Correlation Between GP Act and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both GP Act and Marblegate Acquisition 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 GP Act and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GP Act III Acquisition and Marblegate Acquisition Corp, you can compare the effects of market volatilities on GP Act and Marblegate Acquisition 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 GP Act with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of GP Act and Marblegate Acquisition.
Diversification Opportunities for GP Act and Marblegate Acquisition
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GPAT and Marblegate is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding GP Act III Acquisition and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and GP Act 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 GP Act III Acquisition are associated (or correlated) with Marblegate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marblegate Acquisition has no effect on the direction of GP Act i.e., GP Act and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between GP Act and Marblegate Acquisition
Given the investment horizon of 90 days GP Act is expected to generate 3.96 times less return on investment than Marblegate Acquisition. But when comparing it to its historical volatility, GP Act III Acquisition is 5.18 times less risky than Marblegate Acquisition. It trades about 0.1 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,040 in Marblegate Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 73.00 from holding Marblegate Acquisition Corp or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 73.29% |
| Values | Daily Returns |
GP Act III Acquisition vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| GP Act III |
| Marblegate Acquisition |
GP Act and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GP Act and Marblegate Acquisition
The main advantage of trading using opposite GP Act and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GP Act position performs unexpectedly, Marblegate Acquisition 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 Marblegate Acquisition will offset losses from the drop in Marblegate Acquisition's long position.The idea behind GP Act III Acquisition and Marblegate Acquisition Corp 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.| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. SCOR PK | Marblegate Acquisition vs. Aquagold International |
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.
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