Correlation Between Altimar Acquisition and Aura FAT
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Aura FAT 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 Aura FAT 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 Aura FAT Projects, you can compare the effects of market volatilities on Altimar Acquisition and Aura FAT 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 Aura FAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Aura FAT.
Diversification Opportunities for Altimar Acquisition and Aura FAT
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altimar and Aura is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Aura FAT Projects in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura FAT Projects 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 Aura FAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura FAT Projects has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Aura FAT go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Aura FAT
If you would invest 1,168 in Aura FAT Projects on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Aura FAT Projects or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Aura FAT Projects
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aura FAT Projects |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altimar Acquisition and Aura FAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Aura FAT
The main advantage of trading using opposite Altimar Acquisition and Aura FAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Aura FAT 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 Aura FAT will offset losses from the drop in Aura FAT's long position.| Altimar Acquisition vs. Copa Holdings SA | Altimar Acquisition vs. Bridgford Foods | Altimar Acquisition vs. Albertsons Companies | Altimar Acquisition vs. BBB Foods |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stocks Directory Find actively traded stocks across global markets |