Correlation Between Athena Technology and Mountain I
Can any of the company-specific risk be diversified away by investing in both Athena Technology and Mountain I 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 Mountain I 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 Mountain I Acquisition, you can compare the effects of market volatilities on Athena Technology and Mountain I 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 Mountain I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athena Technology and Mountain I.
Diversification Opportunities for Athena Technology and Mountain I
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Athena and Mountain is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Athena Technology Acquisition and Mountain I Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain I 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 Mountain I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain I Acquisition has no effect on the direction of Athena Technology i.e., Athena Technology and Mountain I go up and down completely randomly.
Pair Corralation between Athena Technology and Mountain I
Given the investment horizon of 90 days Athena Technology Acquisition is expected to under-perform the Mountain I. In addition to that, Athena Technology is 29.42 times more volatile than Mountain I Acquisition. It trades about -0.06 of its total potential returns per unit of risk. Mountain I Acquisition is currently generating about 0.03 per unit of volatility. If you would invest 1,123 in Mountain I Acquisition on November 5, 2024 and sell it today you would earn a total of 16.00 from holding Mountain I Acquisition or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.92% |
| Values | Daily Returns |
Athena Technology Acquisition vs. Mountain I Acquisition
Performance |
| Timeline |
| Athena Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mountain I Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Athena Technology and Mountain I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athena Technology and Mountain I
The main advantage of trading using opposite Athena Technology and Mountain I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athena Technology position performs unexpectedly, Mountain I 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 Mountain I will offset losses from the drop in Mountain I's long position.| Athena Technology vs. Alpha Star Acquisition | Athena Technology vs. Alpha One | Athena Technology vs. A SPAC II |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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