Correlation Between Globalink Investment and Marblegate Acquisition

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

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

Diversification Opportunities for Globalink Investment and Marblegate Acquisition

-0.12

Correlation Coefficient

Globalink Investment  Marblegate Acquisition

Good diversification

The 3 months correlation between Globalink and Marblegate is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Globalink Investment Warrants and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition and Globalink Investment 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 Globalink Investment Warrants 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 Globalink Investment i.e., Globalink Investment and Marblegate Acquisition go up and down completely randomly.

Pair Corralation between Globalink Investment and Marblegate Acquisition

Assuming the 90 days horizon Globalink Investment Warrants is expected to generate 28.92 times more return on investment than Marblegate Acquisition. However, Globalink Investment is 28.92 times more volatile than Marblegate Acquisition Corp. It trades about 0.12 of its potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about -0.06 per unit of risk. If you would invest  3.00  in Globalink Investment Warrants on September 30, 2024 and sell it today you would lose (2.67) from holding Globalink Investment Warrants or give up 89.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	21.88%
Values	Daily Returns

Globalink Investment Warrants  vs.  Marblegate Acquisition Corp

Globalink Investment

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Globalink Investment Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal forward indicators, Globalink Investment showed solid returns over the last few months and may actually be approaching a breakup point.

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 latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Globalink Investment and Marblegate Acquisition

The main advantage of trading using opposite Globalink Investment and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalink Investment 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 Globalink Investment Warrants 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..