Correlation Between Marblegate Acquisition and HUMANA

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

Diversification Opportunities for Marblegate Acquisition and HUMANA

-0.07

Correlation Coefficient

Marblegate Acquisition  HUMANA

Good diversification

The 3 months correlation between Marblegate and HUMANA is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 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 HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and HUMANA go up and down completely randomly.

Pair Corralation between Marblegate Acquisition and HUMANA

Assuming the 90 days horizon Marblegate Acquisition Corp is expected to generate 4.35 times more return on investment than HUMANA. However, Marblegate Acquisition is 4.35 times more volatile than HUMANA INC. It trades about 0.04 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.16 per unit of risk. If you would invest  3.00  in Marblegate Acquisition Corp on September 13, 2024 and sell it today you would earn a total of  0.20  from holding Marblegate Acquisition Corp or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Marblegate Acquisition Corp  vs.  HUMANA INC

Marblegate Acquisition

Risk-Adjusted Performance

3 of 100

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 fairly abnormal technical and fundamental indicators, Marblegate Acquisition may actually be approaching a critical reversion point that can send shares even higher in January 2025.

HUMANA INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HUMANA INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HUMANA INC investors.

Pair Trading with Marblegate Acquisition and HUMANA

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

The idea behind Marblegate Acquisition Corp and HUMANA INC 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.