Correlation Between Marblegate Acquisition and Global Star

Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Global Star 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 Global Star 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 Global Star Acquisition,, you can compare the effects of market volatilities on Marblegate Acquisition and Global Star 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 Global Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Global Star.

Diversification Opportunities for Marblegate Acquisition and Global Star

-0.2

Correlation Coefficient

Marblegate Acquisition  Global Star

Good diversification

The 3 months correlation between Marblegate and Global is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Global Star Acquisition, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Star 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 Global Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Star Acquisition, has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Global Star go up and down completely randomly.

Pair Corralation between Marblegate Acquisition and Global Star

Given the investment horizon of 90 days Marblegate Acquisition Corp is expected to under-perform the Global Star. But the stock apears to be less risky and, when comparing its historical volatility, Marblegate Acquisition Corp is 8.98 times less risky than Global Star. The stock trades about -0.27 of its potential returns per unit of risk. The Global Star Acquisition, is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,184  in Global Star Acquisition, on October 7, 2024 and sell it today you would earn a total of  13.00  from holding Global Star Acquisition, or generate 1.1% return on investment over 90 days.

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

Marblegate Acquisition Corp  vs.  Global Star Acquisition,

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 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.

Global Star Acquisition,

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global Star Acquisition, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Global Star may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Marblegate Acquisition and Global Star

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

The idea behind Marblegate Acquisition Corp and Global Star 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.