Correlation Between Altimar Acquisition and Oncologix Tech

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Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Oncologix Tech 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 Oncologix Tech 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 Oncologix Tech, you can compare the effects of market volatilities on Altimar Acquisition and Oncologix Tech 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 Oncologix Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Oncologix Tech.

Diversification Opportunities for Altimar Acquisition and Oncologix Tech

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Altimar and Oncologix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Oncologix Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncologix Tech 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 Oncologix Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncologix Tech has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Oncologix Tech go up and down completely randomly.

Pair Corralation between Altimar Acquisition and Oncologix Tech

Assuming the 90 days horizon Altimar Acquisition Corp is expected to generate 16.02 times more return on investment than Oncologix Tech. However, Altimar Acquisition is 16.02 times more volatile than Oncologix Tech. It trades about 0.41 of its potential returns per unit of risk. Oncologix Tech is currently generating about 0.03 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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.65%
ValuesDaily Returns

Altimar Acquisition Corp  vs.  Oncologix Tech

 Performance 
       Timeline  
Altimar Acquisition Corp 

Risk-Adjusted Performance

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Over the last 90 days Altimar Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Altimar Acquisition is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
Oncologix Tech 

Risk-Adjusted Performance

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Strong
Very Weak
Over the last 90 days Oncologix Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Oncologix Tech is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Altimar Acquisition and Oncologix Tech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Altimar Acquisition and Oncologix Tech

The main advantage of trading using opposite Altimar Acquisition and Oncologix Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Oncologix Tech 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 Oncologix Tech will offset losses from the drop in Oncologix Tech's long position.
The idea behind Altimar Acquisition Corp and Oncologix Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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