Correlation Between Ionet and Marblegate Acquisition

Can any of the company-specific risk be diversified away by investing in both Ionet and Marblegate Acquisition 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 Ionet and Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ionet and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Ionet and Marblegate Acquisition 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 Ionet with a short position of Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ionet and Marblegate Acquisition.

Diversification Opportunities for Ionet and Marblegate Acquisition

-0.21

Correlation Coefficient

Ionet  Marblegate Acquisition

Very good diversification

The 3 months correlation between Ionet and Marblegate is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ionet and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Ionet 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 ionet are associated (or correlated) with Marblegate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marblegate Acquisition has no effect on the direction of Ionet i.e., Ionet and Marblegate Acquisition go up and down completely randomly.

Pair Corralation between Ionet and Marblegate Acquisition

Assuming the 90 days horizon ionet is expected to under-perform the Marblegate Acquisition. But the crypto coin apears to be less risky and, when comparing its historical volatility, ionet is 3.46 times less risky than Marblegate Acquisition. The crypto coin trades about -0.23 of its potential returns per unit of risk. The Marblegate Acquisition Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,098  in Marblegate Acquisition Corp on December 30, 2024 and sell it today you would earn a total of  2,902  from holding Marblegate Acquisition Corp or generate 264.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

ionet  vs.  Marblegate Acquisition Corp

ionet

Risk-Adjusted Performance

Very Weak

Over the last 90 days ionet has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for ionet shareholders.

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 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Marblegate Acquisition exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ionet and Marblegate Acquisition

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

The idea behind ionet and Marblegate Acquisition Corp 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.