Correlation Between Athena Technology and Concord Acquisition
Can any of the company-specific risk be diversified away by investing in both Athena Technology and Concord 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 Athena Technology and Concord Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athena Technology Acquisition and Concord Acquisition Corp, you can compare the effects of market volatilities on Athena Technology and Concord 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 Athena Technology with a short position of Concord Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athena Technology and Concord Acquisition.
Diversification Opportunities for Athena Technology and Concord Acquisition
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Athena and Concord is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Athena Technology Acquisition and Concord Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Acquisition Corp and Athena Technology 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 Athena Technology Acquisition are associated (or correlated) with Concord Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Acquisition Corp has no effect on the direction of Athena Technology i.e., Athena Technology and Concord Acquisition go up and down completely randomly.
Pair Corralation between Athena Technology and Concord Acquisition
Given the investment horizon of 90 days Athena Technology Acquisition is expected to generate 9.09 times more return on investment than Concord Acquisition. However, Athena Technology is 9.09 times more volatile than Concord Acquisition Corp. It trades about 0.04 of its potential returns per unit of risk. Concord Acquisition Corp is currently generating about 0.14 per unit of risk. If you would invest 1,006 in Athena Technology Acquisition on August 30, 2024 and sell it today you would earn a total of 175.00 from holding Athena Technology Acquisition or generate 17.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.11% |
| Values | Daily Returns |
Athena Technology Acquisition vs. Concord Acquisition Corp
Performance |
| Timeline |
| Athena Technology |
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Athena Technology and Concord Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athena Technology and Concord Acquisition
The main advantage of trading using opposite Athena Technology and Concord Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athena Technology position performs unexpectedly, Concord 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 Concord Acquisition will offset losses from the drop in Concord Acquisition's long position.| Athena Technology vs. Alpha Star Acquisition | Athena Technology vs. Alpha One | Athena Technology vs. A SPAC II |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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