Correlation Between PowerUp Acquisition and Marex Group
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition and Marex Group 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 PowerUp Acquisition and Marex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PowerUp Acquisition Corp and Marex Group plc, you can compare the effects of market volatilities on PowerUp Acquisition and Marex Group 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 PowerUp Acquisition with a short position of Marex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and Marex Group.
Diversification Opportunities for PowerUp Acquisition and Marex Group
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PowerUp and Marex is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and Marex Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marex Group plc and PowerUp 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 PowerUp Acquisition Corp are associated (or correlated) with Marex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marex Group plc has no effect on the direction of PowerUp Acquisition i.e., PowerUp Acquisition and Marex Group go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and Marex Group
Assuming the 90 days horizon PowerUp Acquisition is expected to generate 114.82 times less return on investment than Marex Group. But when comparing it to its historical volatility, PowerUp Acquisition Corp is 13.69 times less risky than Marex Group. It trades about 0.04 of its potential returns per unit of risk. Marex Group plc is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,642 in Marex Group plc on August 31, 2024 and sell it today you would earn a total of 273.00 from holding Marex Group plc or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. Marex Group plc
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| Marex Group plc |
PowerUp Acquisition and Marex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and Marex Group
The main advantage of trading using opposite PowerUp Acquisition and Marex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition position performs unexpectedly, Marex Group 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 Marex Group will offset losses from the drop in Marex Group's long position.| PowerUp Acquisition vs. PowerUp Acquisition Corp | PowerUp Acquisition vs. HUMANA INC | PowerUp Acquisition vs. Aquagold International | PowerUp Acquisition vs. Barloworld Ltd ADR |
| Marex Group vs. LB Foster | Marex Group vs. Pool Corporation | Marex Group vs. Cardinal Health | Marex Group vs. Amkor Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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