Correlation Between Altimar Acquisition and Four Leaf
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Four Leaf 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 Four Leaf 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 Four Leaf Acquisition, you can compare the effects of market volatilities on Altimar Acquisition and Four Leaf 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 Four Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Four Leaf.
Diversification Opportunities for Altimar Acquisition and Four Leaf
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Altimar and Four is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Four Leaf Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Leaf Acquisition 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 Four Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Leaf Acquisition has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Four Leaf go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Four Leaf
If you would invest 1,104 in Four Leaf Acquisition on October 30, 2024 and sell it today you would earn a total of 14.00 from holding Four Leaf Acquisition or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 2.63% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Four Leaf Acquisition
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Four Leaf Acquisition |
Altimar Acquisition and Four Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Four Leaf
The main advantage of trading using opposite Altimar Acquisition and Four Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Four Leaf 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 Four Leaf will offset losses from the drop in Four Leaf's long position.| Altimar Acquisition vs. Willis Lease Finance | Altimar Acquisition vs. Catalyst Pharmaceuticals | Altimar Acquisition vs. Global Net Lease | Altimar Acquisition vs. Willscot Mobile Mini |
| Four Leaf vs. Frontier Group Holdings | Four Leaf vs. Ryanair Holdings PLC | Four Leaf vs. Daily Journal Corp | Four Leaf vs. Zane Interactive Publishing |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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