Correlation Between Altimar Acquisition and Elkhorn
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Elkhorn 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 Altimar Acquisition and Elkhorn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altimar Acquisition Corp and Elkhorn, you can compare the effects of market volatilities on Altimar Acquisition and Elkhorn 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 Altimar Acquisition with a short position of Elkhorn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Elkhorn.
Diversification Opportunities for Altimar Acquisition and Elkhorn
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altimar and Elkhorn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Elkhorn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elkhorn and Altimar 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 Altimar Acquisition Corp are associated (or correlated) with Elkhorn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elkhorn has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Elkhorn go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Elkhorn
If you would invest (100.00) in Elkhorn on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Elkhorn or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Elkhorn
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Elkhorn |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Altimar Acquisition and Elkhorn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Elkhorn
The main advantage of trading using opposite Altimar Acquisition and Elkhorn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Elkhorn 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 Elkhorn will offset losses from the drop in Elkhorn's long position.The idea behind Altimar Acquisition Corp and Elkhorn 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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