Correlation Between Altimar Acquisition and TransAKT
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and TransAKT 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 TransAKT 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 TransAKT, you can compare the effects of market volatilities on Altimar Acquisition and TransAKT 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 TransAKT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and TransAKT.
Diversification Opportunities for Altimar Acquisition and TransAKT
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altimar and TransAKT is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and TransAKT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransAKT 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 TransAKT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransAKT has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and TransAKT go up and down completely randomly.
Pair Corralation between Altimar Acquisition and TransAKT
Assuming the 90 days horizon Altimar Acquisition Corp is expected to generate 1.4 times more return on investment than TransAKT. However, Altimar Acquisition is 1.4 times more volatile than TransAKT. It trades about 0.32 of its potential returns per unit of risk. TransAKT is currently generating about 0.11 per unit of risk. If you would invest 1.10 in Altimar Acquisition Corp on October 21, 2024 and sell it today you would earn a total of 3.90 from holding Altimar Acquisition Corp or generate 354.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.02% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. TransAKT
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TransAKT |
Altimar Acquisition and TransAKT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and TransAKT
The main advantage of trading using opposite Altimar Acquisition and TransAKT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, TransAKT 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 TransAKT will offset losses from the drop in TransAKT's long position.| Altimar Acquisition vs. Oasis Hotel Resort | Altimar Acquisition vs. Boyd Gaming | Altimar Acquisition vs. 51Talk Online Education | Altimar Acquisition vs. Summit Hotel Properties |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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