Correlation Between Altimar Acquisition and Active Health
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Active Health 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 Active Health 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 Active Health Foods, you can compare the effects of market volatilities on Altimar Acquisition and Active Health 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 Active Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Active Health.
Diversification Opportunities for Altimar Acquisition and Active Health
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Altimar and Active is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Active Health Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Active Health Foods 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 Active Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Active Health Foods has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Active Health go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Active Health
If you would invest 5.00 in Altimar Acquisition Corp on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Altimar Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Active Health Foods
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Active Health Foods |
Altimar Acquisition and Active Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Active Health
The main advantage of trading using opposite Altimar Acquisition and Active Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Active Health 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 Active Health will offset losses from the drop in Active Health's long position.| Altimar Acquisition vs. Alaska Air Group | Altimar Acquisition vs. Mesa Air Group | Altimar Acquisition vs. Delta Air Lines | Altimar Acquisition vs. EMCOR Group |
| Active Health vs. Ventana Biotech | Active Health vs. Gold Ent Group | Active Health vs. Profitable Develop | Active Health vs. American Leisure Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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