Correlation Between Altimar Acquisition and Concord Acquisition
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Concord Acquisition 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 Concord Acquisition 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 Concord Acquisition Corp, you can compare the effects of market volatilities on Altimar Acquisition and Concord Acquisition 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 Concord Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Concord Acquisition.
Diversification Opportunities for Altimar Acquisition and Concord Acquisition
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altimar and Concord is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Concord Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Acquisition Corp 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 Concord Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Acquisition Corp has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Concord Acquisition go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Concord Acquisition
Assuming the 90 days horizon Altimar Acquisition Corp is expected to generate 2229.1 times more return on investment than Concord Acquisition. However, Altimar Acquisition is 2229.1 times more volatile than Concord Acquisition Corp. It trades about 0.41 of its potential returns per unit of risk. Concord Acquisition Corp is currently generating about 0.15 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 Against |
| Strength | Insignificant |
| Accuracy | 15.97% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Concord Acquisition Corp
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altimar Acquisition and Concord Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Concord Acquisition
The main advantage of trading using opposite Altimar Acquisition and Concord Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Concord Acquisition 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 Concord Acquisition will offset losses from the drop in Concord Acquisition's long position.| Altimar Acquisition vs. CECO Environmental Corp | Altimar Acquisition vs. SEI Investments | Altimar Acquisition vs. Black Hills | Altimar Acquisition vs. CapitaLand Investment Limited |
| Concord Acquisition vs. Thunder Bridge Capital | Concord Acquisition vs. Welsbach Technology Metals | Concord Acquisition vs. Hudson Acquisition I | Concord Acquisition vs. Marblegate Acquisition 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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