Correlation Between Swiftmerge Acquisition and Marblegate Acquisition

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

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

Diversification Opportunities for Swiftmerge Acquisition and Marblegate Acquisition

0.56

Correlation Coefficient

Swiftmerge Acquisition  Marblegate Acquisition

Very weak diversification

The 3 months correlation between Swiftmerge and Marblegate is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Swiftmerge Acquisition Corp and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Swiftmerge 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 Swiftmerge Acquisition Corp 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 Swiftmerge Acquisition i.e., Swiftmerge Acquisition and Marblegate Acquisition go up and down completely randomly.

Pair Corralation between Swiftmerge Acquisition and Marblegate Acquisition

Assuming the 90 days horizon Swiftmerge Acquisition Corp is expected to under-perform the Marblegate Acquisition. But the stock apears to be less risky and, when comparing its historical volatility, Swiftmerge Acquisition Corp is 1.26 times less risky than Marblegate Acquisition. The stock trades about -0.06 of its potential returns per unit of risk. The Marblegate Acquisition Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,109  in Marblegate Acquisition Corp on September 4, 2024 and sell it today you would earn a total of  4.00  from holding Marblegate Acquisition Corp or generate 0.36% return on investment over 90 days.

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

Swiftmerge Acquisition Corp  vs.  Marblegate Acquisition Corp

Swiftmerge Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

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

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 rather sound basic indicators, Marblegate Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Swiftmerge Acquisition and Marblegate Acquisition

The main advantage of trading using opposite Swiftmerge Acquisition and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiftmerge Acquisition 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 Swiftmerge Acquisition Corp 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.