Correlation Between Altimar Acquisition and Oak Woods
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Oak Woods 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 Oak Woods 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 Oak Woods Acquisition, you can compare the effects of market volatilities on Altimar Acquisition and Oak Woods 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 Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Oak Woods.
Diversification Opportunities for Altimar Acquisition and Oak Woods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altimar and Oak is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods 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 Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Oak Woods go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Oak Woods
If you would invest 1,144 in Oak Woods Acquisition on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Oak Woods Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Oak Woods Acquisition
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oak Woods Acquisition |
Altimar Acquisition and Oak Woods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Oak Woods
The main advantage of trading using opposite Altimar Acquisition and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' long position.| Altimar Acquisition vs. Verde Clean Fuels | Altimar Acquisition vs. CleanGo Innovations | Altimar Acquisition vs. Aduro Clean Technologies | Altimar Acquisition vs. Capital Clean Energy |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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