Correlation Between Altimar Acquisition and Vector Acquisition
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Vector 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 Vector 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 Vector Acquisition II, you can compare the effects of market volatilities on Altimar Acquisition and Vector 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 Vector Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Vector Acquisition.
Diversification Opportunities for Altimar Acquisition and Vector Acquisition
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altimar and Vector is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Vector Acquisition II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vector 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 Vector Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vector Acquisition has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Vector Acquisition go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Vector Acquisition
Assuming the 90 days horizon Altimar Acquisition Corp is expected to generate 383.32 times more return on investment than Vector Acquisition. However, Altimar Acquisition is 383.32 times more volatile than Vector Acquisition II. It trades about 0.36 of its potential returns per unit of risk. Vector Acquisition II is currently generating about 0.07 per unit of risk. If you would invest 0.10 in Altimar Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 4.90 from holding Altimar Acquisition Corp or generate 4900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.54% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Vector Acquisition II
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vector Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altimar Acquisition and Vector Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Vector Acquisition
The main advantage of trading using opposite Altimar Acquisition and Vector Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Vector 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 Vector Acquisition will offset losses from the drop in Vector Acquisition's long position.| Altimar Acquisition vs. Udemy Inc | Altimar Acquisition vs. Coursera | Altimar Acquisition vs. Bright Scholar Education | Altimar Acquisition vs. Sun Country Airlines |
| Vector Acquisition vs. Goldenstone Acquisition | Vector Acquisition vs. Manaris Corp | Vector Acquisition vs. Alpha One |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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