Correlation Between A SPAC and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both A SPAC 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 A SPAC and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A SPAC II and Altimar Acquisition Corp, you can compare the effects of market volatilities on A SPAC 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 A SPAC with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of A SPAC and Altimar Acquisition.
Diversification Opportunities for A SPAC and Altimar Acquisition
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ASCB and Altimar is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding A SPAC II 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 A SPAC 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 A SPAC II 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 A SPAC i.e., A SPAC and Altimar Acquisition go up and down completely randomly.
Pair Corralation between A SPAC and Altimar Acquisition
If you would invest 1,087 in A SPAC II on November 4, 2024 and sell it today you would earn a total of 18.00 from holding A SPAC II or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
A SPAC II vs. Altimar Acquisition Corp
Performance |
| Timeline |
| A SPAC II |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
A SPAC and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A SPAC and Altimar Acquisition
The main advantage of trading using opposite A SPAC and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A SPAC 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.The idea behind A SPAC II and Altimar 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.| Altimar Acquisition vs. The Peoples Insurance | Altimar Acquisition vs. Braskem SA Class | Altimar Acquisition vs. Old Republic International | Altimar Acquisition vs. Ecolab Inc |
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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