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

-0.45

Correlation Coefficient

Marblegate Acquisition  Amkor Technology

Very good diversification

The 3 months correlation between Marblegate and Amkor is -0.45. 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 0.28 times more return on investment than Amkor Technology. However, Marblegate Acquisition Corp is 3.51 times less risky than Amkor Technology. It trades about 0.05 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.15 per unit of risk. If you would invest  1,125  in Marblegate Acquisition Corp on December 3, 2024 and sell it today you would earn a total of  21.10  from holding Marblegate Acquisition Corp or generate 1.88% return on investment over 90 days.

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

Marblegate Acquisition Corp  vs.  Amkor Technology

Marblegate Acquisition

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Marblegate Acquisition Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Marblegate Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Amkor Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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.

The idea behind Marblegate Acquisition Corp and Amkor Technology 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.