Correlation Between Western Union and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both Western Union 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 Western Union and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Union Co and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Western Union 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 Western Union with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Union and Marblegate Acquisition.
Diversification Opportunities for Western Union and Marblegate Acquisition
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Marblegate is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Western Union Co and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Western Union 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 Western Union Co 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 Western Union i.e., Western Union and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between Western Union and Marblegate Acquisition
Allowing for the 90-day total investment horizon Western Union is expected to generate 1.61 times less return on investment than Marblegate Acquisition. In addition to that, Western Union is 3.32 times more volatile than Marblegate Acquisition Corp. It trades about 0.01 of its total potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.05 per unit of volatility. If you would invest 1,031 in Marblegate Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 82.00 from holding Marblegate Acquisition Corp or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Union Co vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| Western Union |
| Marblegate Acquisition |
Western Union and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Union and Marblegate Acquisition
The main advantage of trading using opposite Western Union and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Union 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.| Western Union vs. American Express | Western Union vs. Morningstar Unconstrained Allocation | Western Union vs. Sitka Gold Corp | Western Union vs. MSCI ACWI exAUCONSUMER |
| Marblegate Acquisition vs. Alpha One | Marblegate Acquisition vs. Manaris Corp | Marblegate Acquisition vs. Hudson Acquisition I | Marblegate Acquisition vs. DP Cap Acquisition |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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