Correlation Between Altimar Acquisition and Generation Asia
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Generation Asia 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 Generation Asia 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 Generation Asia I, you can compare the effects of market volatilities on Altimar Acquisition and Generation Asia 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 Generation Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Generation Asia.
Diversification Opportunities for Altimar Acquisition and Generation Asia
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Altimar and Generation is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Generation Asia I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Asia I 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 Generation Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Asia I has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Generation Asia go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Generation Asia
If you would invest 1,140 in Generation Asia I on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Generation Asia I or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Generation Asia I
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Generation Asia I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altimar Acquisition and Generation Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Generation Asia
The main advantage of trading using opposite Altimar Acquisition and Generation Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Generation Asia 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 Generation Asia will offset losses from the drop in Generation Asia's long position.The idea behind Altimar Acquisition Corp and Generation Asia I 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.| Generation Asia vs. Green Planet Bio | Generation Asia vs. Opus Magnum Ameris | Generation Asia vs. Azure Holding Group | Generation Asia vs. Four Leaf Acquisition |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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