Correlation Between PBAXW Old and Marblegate Acquisition

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

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

Diversification Opportunities for PBAXW Old and Marblegate Acquisition

-0.03

Correlation Coefficient

PBAXW Old  Marblegate Acquisition

Good diversification

The 3 months correlation between PBAXW and Marblegate is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding PBAXW Old and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and PBAXW Old 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 PBAXW Old 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 PBAXW Old i.e., PBAXW Old and Marblegate Acquisition go up and down completely randomly.

Pair Corralation between PBAXW Old and Marblegate Acquisition

If you would invest  6.11  in PBAXW Old on October 9, 2024 and sell it today you would earn a total of  0.00  from holding PBAXW Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

PBAXW Old  vs.  Marblegate Acquisition Corp

PBAXW Old

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with PBAXW Old and Marblegate Acquisition

The main advantage of trading using opposite PBAXW Old and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBAXW Old 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 PBAXW Old 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.