Correlation Between Marblegate Acquisition and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Marblegate Acquisition and Amkor Technology 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 Amkor Technology 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 Amkor Technology, you can compare the effects of market volatilities on Marblegate Acquisition and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marblegate Acquisition and Amkor Technology.
Diversification Opportunities for Marblegate Acquisition and Amkor Technology
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marblegate and Amkor is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Amkor Technology go up and down completely randomly.
Pair Corralation between Marblegate Acquisition and Amkor Technology
Assuming the 90 days horizon Marblegate Acquisition Corp is expected to generate 6.11 times more return on investment than Amkor Technology. However, Marblegate Acquisition is 6.11 times more volatile than Amkor Technology. It trades about 0.19 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.2 per unit of risk. If you would invest 1,101 in Marblegate Acquisition Corp on December 29, 2024 and sell it today you would earn a total of 3,298 from holding Marblegate Acquisition Corp or generate 299.55% 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. Amkor Technology
Performance |
Timeline |
Marblegate Acquisition |
Amkor Technology |
Marblegate Acquisition and Amkor Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marblegate Acquisition and Amkor Technology
The main advantage of trading using opposite Marblegate Acquisition and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marblegate Acquisition position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.Marblegate Acquisition vs. Willamette Valley Vineyards | Marblegate Acquisition vs. Parker Hannifin | Marblegate Acquisition vs. Loud Beverage Group | Marblegate Acquisition vs. Keurig Dr Pepper |
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Check out your portfolio center.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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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