Correlation Between KKR Co and Marblegate Acquisition

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

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

Diversification Opportunities for KKR Co and Marblegate Acquisition

-0.84

Correlation Coefficient

KKR Co  Marblegate Acquisition

Pay attention - limited upside

The 3 months correlation between KKR and Marblegate is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and KKR Co 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 KKR Co LP 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 KKR Co i.e., KKR Co and Marblegate Acquisition go up and down completely randomly.

Pair Corralation between KKR Co and Marblegate Acquisition

Considering the 90-day investment horizon KKR Co LP is expected to under-perform the Marblegate Acquisition. But the stock apears to be less risky and, when comparing its historical volatility, KKR Co LP is 3.59 times less risky than Marblegate Acquisition. The stock trades about -0.12 of its potential returns per unit of risk. The Marblegate Acquisition Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  3.00  in Marblegate Acquisition Corp on December 20, 2024 and sell it today you would earn a total of  5.01  from holding Marblegate Acquisition Corp or generate 167.0% return on investment over 90 days.

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

KKR Co LP  vs.  Marblegate Acquisition Corp

KKR Co LP

Risk-Adjusted Performance

Very Weak

Over the last 90 days KKR Co LP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Marblegate Acquisition

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Marblegate Acquisition Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, Marblegate Acquisition showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KKR Co and Marblegate Acquisition

The main advantage of trading using opposite KKR Co and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co 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 KKR Co LP 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.