Correlation Between Altimar Acquisition and Blockchain Industries
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Blockchain Industries 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 Blockchain Industries 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 Blockchain Industries, you can compare the effects of market volatilities on Altimar Acquisition and Blockchain Industries 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 Blockchain Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Blockchain Industries.
Diversification Opportunities for Altimar Acquisition and Blockchain Industries
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Altimar and Blockchain is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Blockchain Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Industries 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 Blockchain Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Industries has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Blockchain Industries go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Blockchain Industries
Assuming the 90 days horizon Altimar Acquisition Corp is expected to generate 13.75 times more return on investment than Blockchain Industries. However, Altimar Acquisition is 13.75 times more volatile than Blockchain Industries. It trades about 0.41 of its potential returns per unit of risk. Blockchain Industries is currently generating about 0.07 per unit of risk. If you would invest 0.02 in Altimar Acquisition Corp on September 13, 2024 and sell it today you would earn a total of 4.98 from holding Altimar Acquisition Corp or generate 24900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.66% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Blockchain Industries
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blockchain Industries |
Altimar Acquisition and Blockchain Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Blockchain Industries
The main advantage of trading using opposite Altimar Acquisition and Blockchain Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Blockchain Industries 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 Blockchain Industries will offset losses from the drop in Blockchain Industries' long position.| Altimar Acquisition vs. CECO Environmental Corp | Altimar Acquisition vs. SEI Investments | Altimar Acquisition vs. Black Hills | Altimar Acquisition vs. CapitaLand Investment Limited |
| Blockchain Industries vs. Alpha One | Blockchain Industries vs. Manaris Corp | Blockchain Industries vs. C2E Energy | Blockchain Industries vs. Tanke Biosciences |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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