Correlation Between Marblegate Acquisition and Home Plate

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

Diversification Opportunities for Marblegate Acquisition and Home Plate

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Correlation Coefficient

Marblegate Acquisition  Home Plate

Pay attention - limited upside

The 3 months correlation between Marblegate and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and Home Plate Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Plate 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 Home Plate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Plate Acquisition has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and Home Plate go up and down completely randomly.

Pair Corralation between Marblegate Acquisition and Home Plate

If you would invest  1,101  in Marblegate Acquisition Corp on December 30, 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	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Marblegate Acquisition Corp  vs.  Home Plate 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 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical and fundamental indicators, Marblegate Acquisition unveiled solid returns over the last few months and may actually be approaching a breakup point.

Home Plate Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Home Plate Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Home Plate is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Marblegate Acquisition and Home Plate

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

The idea behind Marblegate Acquisition Corp and Home Plate 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.