Correlation Between Aduro Clean and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both Aduro Clean and Altimar 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 Aduro Clean and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aduro Clean Technologies and Altimar Acquisition Corp, you can compare the effects of market volatilities on Aduro Clean and Altimar 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 Aduro Clean with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aduro Clean and Altimar Acquisition.
Diversification Opportunities for Aduro Clean and Altimar Acquisition
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aduro and Altimar is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aduro Clean Technologies and Altimar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altimar Acquisition Corp and Aduro Clean 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 Aduro Clean Technologies are associated (or correlated) with Altimar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altimar Acquisition Corp has no effect on the direction of Aduro Clean i.e., Aduro Clean and Altimar Acquisition go up and down completely randomly.
Pair Corralation between Aduro Clean and Altimar Acquisition
If you would invest 5.00 in Altimar Acquisition Corp on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Altimar Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Aduro Clean Technologies vs. Altimar Acquisition Corp
Performance |
| Timeline |
| Aduro Clean Technologies |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aduro Clean and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aduro Clean and Altimar Acquisition
The main advantage of trading using opposite Aduro Clean and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aduro Clean position performs unexpectedly, Altimar 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 Altimar Acquisition will offset losses from the drop in Altimar Acquisition's long position.| Aduro Clean vs. Energy Recovery | Aduro Clean vs. Arq Inc | Aduro Clean vs. Federal Signal | Aduro Clean vs. Purecycle Technologies Holdings |
| Altimar Acquisition vs. Verde Clean Fuels | Altimar Acquisition vs. CleanGo Innovations | Altimar Acquisition vs. Aduro Clean Technologies | Altimar Acquisition vs. Capital Clean Energy |
Check out your portfolio center.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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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