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

-0.34

Correlation Coefficient

Blackstone  Marblegate Acquisition

Very good diversification

The 3 months correlation between Blackstone and Marblegate is -0.34. 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 is expected to generate 8.81 times less return on investment than Marblegate Acquisition. But when comparing it to its historical volatility, Blackstone Group is 10.66 times less risky than Marblegate Acquisition. It trades about 0.09 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  6.00  in Marblegate Acquisition Corp on October 11, 2024 and sell it today you would lose (3.00) from holding Marblegate Acquisition Corp or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Blackstone Group  vs.  Marblegate Acquisition Corp

Blackstone Group

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Blackstone showed solid returns over the last few months and may actually be approaching a breakup point.

Marblegate Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marblegate Acquisition Corp 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 technical and fundamental indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.