Correlation Between Marblegate Acquisition and FTAC Zeus

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

Diversification Opportunities for Marblegate Acquisition and FTAC Zeus

0.0

Correlation Coefficient

Marblegate Acquisition  FTAC Zeus

Pay attention - limited upside

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

Pair Corralation between Marblegate Acquisition and FTAC Zeus

Assuming the 90 days horizon Marblegate Acquisition is expected to generate 2.07 times less return on investment than FTAC Zeus. But when comparing it to its historical volatility, Marblegate Acquisition Corp is 1.2 times less risky than FTAC Zeus. It trades about 0.07 of its potential returns per unit of risk. FTAC Zeus Acquisition is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2.50  in FTAC Zeus Acquisition on October 11, 2024 and sell it today you would earn a total of  1.50  from holding FTAC Zeus Acquisition or generate 60.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	16.36%
Values	Daily Returns

Marblegate Acquisition Corp  vs.  FTAC Zeus 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 abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

FTAC Zeus Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FTAC Zeus Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, FTAC Zeus is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Marblegate Acquisition and FTAC Zeus

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

The idea behind Marblegate Acquisition Corp and FTAC Zeus 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.

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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.