Correlation Between Altimar Acquisition and ClimateRock
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and ClimateRock 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 ClimateRock 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 ClimateRock Class A, you can compare the effects of market volatilities on Altimar Acquisition and ClimateRock 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 ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and ClimateRock.
Diversification Opportunities for Altimar Acquisition and ClimateRock
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Altimar and ClimateRock is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class 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 ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and ClimateRock go up and down completely randomly.
Pair Corralation between Altimar Acquisition and ClimateRock
If you would invest 1,175 in ClimateRock Class A on October 25, 2024 and sell it today you would earn a total of 15.02 from holding ClimateRock Class A or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. ClimateRock Class A
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ClimateRock Class |
Altimar Acquisition and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and ClimateRock
The main advantage of trading using opposite Altimar Acquisition and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| Altimar Acquisition vs. Primoris Services | Altimar Acquisition vs. Diamond Estates Wines | Altimar Acquisition vs. Hurco Companies | Altimar Acquisition vs. Treasury Wine Estates |
| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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