Correlation Between Alaska Air and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both Alaska Air 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 Alaska Air and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alaska Air Group and Altimar Acquisition Corp, you can compare the effects of market volatilities on Alaska Air 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 Alaska Air with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and Altimar Acquisition.
Diversification Opportunities for Alaska Air and Altimar Acquisition
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alaska and Altimar is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group 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 Alaska Air 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 Alaska Air Group 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 Alaska Air i.e., Alaska Air and Altimar Acquisition go up and down completely randomly.
Pair Corralation between Alaska Air and Altimar Acquisition
If you would invest 4,554 in Alaska Air Group on August 26, 2024 and sell it today you would earn a total of 688.00 from holding Alaska Air Group or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Alaska Air Group vs. Altimar Acquisition Corp
Performance |
| Timeline |
| Alaska Air Group |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alaska Air and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alaska Air and Altimar Acquisition
The main advantage of trading using opposite Alaska Air and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alaska Air 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.| Alaska Air vs. Delta Air Lines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. American Airlines Group | Alaska Air vs. JetBlue Airways Corp |
| Altimar Acquisition vs. Alaska Air Group | Altimar Acquisition vs. Mesa Air Group | Altimar Acquisition vs. Delta Air Lines | Altimar Acquisition vs. EMCOR Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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