Correlation Between Marblegate Acquisition and BurTech Acquisition

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

Diversification Opportunities for Marblegate Acquisition and BurTech Acquisition

-0.51

Correlation Coefficient

Marblegate Acquisition  BurTech Acquisition

Excellent diversification

The 3 months correlation between Marblegate and BurTech is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Marblegate Acquisition Corp and BurTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurTech Acquisition Corp 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 BurTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurTech Acquisition Corp has no effect on the direction of Marblegate Acquisition i.e., Marblegate Acquisition and BurTech Acquisition go up and down completely randomly.

Pair Corralation between Marblegate Acquisition and BurTech Acquisition

Given the investment horizon of 90 days Marblegate Acquisition Corp is expected to generate 0.55 times more return on investment than BurTech Acquisition. However, Marblegate Acquisition Corp is 1.81 times less risky than BurTech Acquisition. It trades about 0.12 of its potential returns per unit of risk. BurTech Acquisition Corp is currently generating about -0.19 per unit of risk. If you would invest  1,091  in Marblegate Acquisition Corp on August 16, 2024 and sell it today you would earn a total of  28.00  from holding Marblegate Acquisition Corp or generate 2.57% return on investment over 90 days.

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

Marblegate Acquisition Corp  vs.  BurTech Acquisition Corp

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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.

BurTech Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BurTech Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Marblegate Acquisition and BurTech Acquisition

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

The idea behind Marblegate Acquisition Corp and BurTech 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 Global Correlations module to find global opportunities by holding instruments from different markets.