Correlation Between Marblegate Acquisition and Distoken Acquisition

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

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

Diversification Opportunities for Marblegate Acquisition and Distoken Acquisition

0.33

Correlation Coefficient

Marblegate Acquisition  Distoken Acquisition

Weak diversification

The 3 months correlation between Marblegate and Distoken is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Distoken Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Distoken Acquisition and Marblegate 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 Marblegate Acquisition Corp are associated (or correlated) with Distoken Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Distoken Acquisition has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Distoken Acquisition go up and down completely randomly.

Pair Corralation between Marblegate Acquisition and Distoken Acquisition

Given the investment horizon of 90 days Marblegate Acquisition Corp is expected to generate 1.17 times more return on investment than Distoken Acquisition. However, Marblegate Acquisition is 1.17 times more volatile than Distoken Acquisition. It trades about 0.14 of its potential returns per unit of risk. Distoken Acquisition is currently generating about 0.14 per unit of risk. If you would invest  1,098  in Marblegate Acquisition Corp on December 31, 2024 and sell it today you would earn a total of  2,902  from holding Marblegate Acquisition Corp or generate 264.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	40.98%
Values	Daily Returns

Marblegate Acquisition Corp  vs.  Distoken Acquisition

Marblegate Acquisition

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marblegate Acquisition Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Marblegate Acquisition exhibited solid returns over the last few months and may actually be approaching a breakup point.

Distoken Acquisition

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Distoken Acquisition are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Distoken Acquisition reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marblegate Acquisition and Distoken Acquisition

The main advantage of trading using opposite Marblegate Acquisition and Distoken Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Distoken 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 Distoken Acquisition will offset losses from the drop in Distoken Acquisition's long position.

The idea behind Marblegate Acquisition Corp and Distoken Acquisition 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.