Correlation Between Alset Capital and Marblegate Acquisition

Can any of the company-specific risk be diversified away by investing in both Alset Capital 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 Alset Capital and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alset Capital Acquisition and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Alset Capital 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 Alset Capital with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alset Capital and Marblegate Acquisition.

Diversification Opportunities for Alset Capital and Marblegate Acquisition

0.57

Correlation Coefficient

Alset Capital  Marblegate Acquisition

Very weak diversification

The 3 months correlation between Alset and Marblegate is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Alset Capital 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 Alset Capital 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 Alset Capital 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 Alset Capital i.e., Alset Capital and Marblegate Acquisition go up and down completely randomly.

Pair Corralation between Alset Capital and Marblegate Acquisition

If you would invest  1,096  in Marblegate Acquisition Corp on September 13, 2024 and sell it today you would earn a total of  10.00  from holding Marblegate Acquisition Corp or generate 0.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Alset Capital Acquisition  vs.  Marblegate Acquisition Corp

Alset Capital Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alset Capital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Alset Capital is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Marblegate Acquisition

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marblegate Acquisition Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Marblegate Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Alset Capital and Marblegate Acquisition

The main advantage of trading using opposite Alset Capital and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alset Capital 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 Alset Capital 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.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.