Correlation Between Altimar Acquisition and Lakeshore Acquisition
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Lakeshore 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 Lakeshore 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 Lakeshore Acquisition II, you can compare the effects of market volatilities on Altimar Acquisition and Lakeshore 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 Lakeshore Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Lakeshore Acquisition.
Diversification Opportunities for Altimar Acquisition and Lakeshore Acquisition
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Altimar and Lakeshore is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Lakeshore Acquisition II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeshore 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 Lakeshore Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeshore Acquisition has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Lakeshore Acquisition go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Lakeshore Acquisition
If you would invest 1,062 in Lakeshore Acquisition II on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Lakeshore Acquisition II or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Lakeshore Acquisition II
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lakeshore Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altimar Acquisition and Lakeshore Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Lakeshore Acquisition
The main advantage of trading using opposite Altimar Acquisition and Lakeshore Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Lakeshore 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 Lakeshore Acquisition will offset losses from the drop in Lakeshore Acquisition's long position.| Altimar Acquisition vs. Western Digital | Altimar Acquisition vs. Keurig Dr Pepper | Altimar Acquisition vs. NETGEAR | Altimar Acquisition vs. Evertz Technologies Limited |
| Lakeshore Acquisition vs. Manaris Corp | Lakeshore Acquisition vs. Alpha One | Lakeshore Acquisition vs. Goldenstone Acquisition |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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