Correlation Between Lexinfintech Holdings and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings 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 Lexinfintech Holdings and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Lexinfintech Holdings 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 Lexinfintech Holdings with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and Marblegate Acquisition.
Diversification Opportunities for Lexinfintech Holdings and Marblegate Acquisition
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lexinfintech and Marblegate is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Lexinfintech Holdings 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 Lexinfintech Holdings 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 Lexinfintech Holdings i.e., Lexinfintech Holdings and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and Marblegate Acquisition
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 59.53 times more return on investment than Marblegate Acquisition. However, Lexinfintech Holdings is 59.53 times more volatile than Marblegate Acquisition Corp. It trades about 0.34 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about -0.22 per unit of risk. If you would invest 577.00 in Lexinfintech Holdings on November 3, 2024 and sell it today you would earn a total of 213.00 from holding Lexinfintech Holdings or generate 36.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexinfintech Holdings vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| Lexinfintech Holdings |
| Marblegate Acquisition |
Lexinfintech Holdings and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and Marblegate Acquisition
The main advantage of trading using opposite Lexinfintech Holdings and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings 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.| Lexinfintech Holdings vs. 360 Finance | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Enova International |
| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. Hudson Acquisition I |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |