Correlation Between SPACE and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both SPACE 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 SPACE and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPACE and Marblegate Acquisition Corp, you can compare the effects of market volatilities on SPACE 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 SPACE with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPACE and Marblegate Acquisition.
Diversification Opportunities for SPACE and Marblegate Acquisition
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPACE and Marblegate is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SPACE and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and SPACE 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 SPACE 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 SPACE i.e., SPACE and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between SPACE and Marblegate Acquisition
Assuming the 90 days horizon SPACE is expected to generate 6.87 times more return on investment than Marblegate Acquisition. However, SPACE is 6.87 times more volatile than Marblegate Acquisition Corp. It trades about 0.27 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.07 per unit of risk. If you would invest 36.00 in SPACE on September 3, 2024 and sell it today you would earn a total of 23.00 from holding SPACE or generate 63.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
SPACE vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| SPACE |
| Marblegate Acquisition |
SPACE and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPACE and Marblegate Acquisition
The main advantage of trading using opposite SPACE and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPACE 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 SPACE 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 CEOs Directory module to screen CEOs from public companies around the world.
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