Correlation Between Athena Technology and Hudson Acquisition
Can any of the company-specific risk be diversified away by investing in both Athena Technology and Hudson 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 Hudson 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 Hudson Acquisition I, you can compare the effects of market volatilities on Athena Technology and Hudson 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 Hudson Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athena Technology and Hudson Acquisition.
Diversification Opportunities for Athena Technology and Hudson Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Athena and Hudson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Athena Technology Acquisition and Hudson Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Acquisition 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 Hudson Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Acquisition has no effect on the direction of Athena Technology i.e., Athena Technology and Hudson Acquisition go up and down completely randomly.
Pair Corralation between Athena Technology and Hudson Acquisition
Given the investment horizon of 90 days Athena Technology is expected to generate 3.82 times less return on investment than Hudson Acquisition. But when comparing it to its historical volatility, Athena Technology Acquisition is 3.21 times less risky than Hudson Acquisition. It trades about 0.03 of its potential returns per unit of risk. Hudson Acquisition I is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,088 in Hudson Acquisition I on August 24, 2024 and sell it today you would earn a total of 252.00 from holding Hudson Acquisition I or generate 23.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Athena Technology Acquisition vs. Hudson Acquisition I
Performance |
| Timeline |
| Athena Technology |
| Hudson Acquisition |
Athena Technology and Hudson Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athena Technology and Hudson Acquisition
The main advantage of trading using opposite Athena Technology and Hudson Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athena Technology position performs unexpectedly, Hudson 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 Hudson Acquisition will offset losses from the drop in Hudson Acquisition's long position.| Athena Technology vs. Alpha Star Acquisition | Athena Technology vs. Alpha One | Athena Technology vs. A SPAC II |
| Hudson Acquisition vs. Distoken Acquisition | Hudson Acquisition vs. Voyager Acquisition Corp | Hudson Acquisition vs. dMY Squared Technology | Hudson Acquisition vs. YHN Acquisition I |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |