Correlation Between Altitude Acquisition and Corner Growth
Can any of the company-specific risk be diversified away by investing in both Altitude Acquisition and Corner Growth 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 Altitude Acquisition and Corner Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altitude Acquisition Corp and Corner Growth Acquisition, you can compare the effects of market volatilities on Altitude Acquisition and Corner Growth 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 Altitude Acquisition with a short position of Corner Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altitude Acquisition and Corner Growth.
Diversification Opportunities for Altitude Acquisition and Corner Growth
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altitude and Corner is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Altitude Acquisition Corp and Corner Growth Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corner Growth Acquisition and Altitude 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 Altitude Acquisition Corp are associated (or correlated) with Corner Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corner Growth Acquisition has no effect on the direction of Altitude Acquisition i.e., Altitude Acquisition and Corner Growth go up and down completely randomly.
Pair Corralation between Altitude Acquisition and Corner Growth
If you would invest 5.00 in Corner Growth Acquisition on August 29, 2024 and sell it today you would earn a total of 16.00 from holding Corner Growth Acquisition or generate 320.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.71% |
| Values | Daily Returns |
Altitude Acquisition Corp vs. Corner Growth Acquisition
Performance |
| Timeline |
| Altitude Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Corner Growth Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altitude Acquisition and Corner Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altitude Acquisition and Corner Growth
The main advantage of trading using opposite Altitude Acquisition and Corner Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altitude Acquisition position performs unexpectedly, Corner Growth 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 Corner Growth will offset losses from the drop in Corner Growth's long position.The idea behind Altitude Acquisition Corp and Corner Growth Acquisition 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.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |