Correlation Between AlphaTime Acquisition and Xtant Medical
Can any of the company-specific risk be diversified away by investing in both AlphaTime Acquisition and Xtant Medical 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 AlphaTime Acquisition and Xtant Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AlphaTime Acquisition Corp and Xtant Medical Holdings, you can compare the effects of market volatilities on AlphaTime Acquisition and Xtant Medical 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 AlphaTime Acquisition with a short position of Xtant Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AlphaTime Acquisition and Xtant Medical.
Diversification Opportunities for AlphaTime Acquisition and Xtant Medical
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AlphaTime and Xtant is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding AlphaTime Acquisition Corp and Xtant Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtant Medical Holdings and AlphaTime 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 AlphaTime Acquisition Corp are associated (or correlated) with Xtant Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtant Medical Holdings has no effect on the direction of AlphaTime Acquisition i.e., AlphaTime Acquisition and Xtant Medical go up and down completely randomly.
Pair Corralation between AlphaTime Acquisition and Xtant Medical
Given the investment horizon of 90 days AlphaTime Acquisition Corp is expected to under-perform the Xtant Medical. But the stock apears to be less risky and, when comparing its historical volatility, AlphaTime Acquisition Corp is 52.64 times less risky than Xtant Medical. The stock trades about -0.09 of its potential returns per unit of risk. The Xtant Medical Holdings is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Xtant Medical Holdings on October 7, 2024 and sell it today you would earn a total of 13.00 from holding Xtant Medical Holdings or generate 32.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AlphaTime Acquisition Corp vs. Xtant Medical Holdings
Performance |
| Timeline |
| AlphaTime Acquisition |
| Xtant Medical Holdings |
AlphaTime Acquisition and Xtant Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AlphaTime Acquisition and Xtant Medical
The main advantage of trading using opposite AlphaTime Acquisition and Xtant Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AlphaTime Acquisition position performs unexpectedly, Xtant Medical 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 Xtant Medical will offset losses from the drop in Xtant Medical's long position.| AlphaTime Acquisition vs. Bright Scholar Education | AlphaTime Acquisition vs. Adtalem Global Education | AlphaTime Acquisition vs. Lincoln Electric Holdings | AlphaTime Acquisition vs. Haemonetics |
| Xtant Medical vs. Neuropace | Xtant Medical vs. Electromed | Xtant Medical vs. Orthopediatrics Corp | Xtant Medical vs. SurModics |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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