Correlation Between Blackstone and Marblegate Acquisition

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

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

Diversification Opportunities for Blackstone and Marblegate Acquisition

0.2

Correlation Coefficient

Blackstone  Marblegate Acquisition

Modest diversification

The 3 months correlation between Blackstone and Marblegate is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Blackstone 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 Blackstone Group 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 Blackstone i.e., Blackstone and Marblegate Acquisition go up and down completely randomly.

Pair Corralation between Blackstone and Marblegate Acquisition

Allowing for the 90-day total investment horizon Blackstone Group is expected to under-perform the Marblegate Acquisition. In addition to that, Blackstone is 1.4 times more volatile than Marblegate Acquisition Corp. It trades about -0.1 of its total potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.07 per unit of volatility. If you would invest  1,098  in Marblegate Acquisition Corp on December 22, 2024 and sell it today you would earn a total of  62.00  from holding Marblegate Acquisition Corp or generate 5.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Blackstone Group  vs.  Marblegate Acquisition Corp

Blackstone Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackstone Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Marblegate Acquisition

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Marblegate Acquisition Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Marblegate Acquisition may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Blackstone and Marblegate Acquisition

The main advantage of trading using opposite Blackstone and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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 Blackstone Group 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 Global Correlations module to find global opportunities by holding instruments from different markets.