Correlation Between Azure Holding and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both Azure Holding and Altimar 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 Azure Holding and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azure Holding Group and Altimar Acquisition Corp, you can compare the effects of market volatilities on Azure Holding and Altimar 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 Azure Holding with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azure Holding and Altimar Acquisition.
Diversification Opportunities for Azure Holding and Altimar Acquisition
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Azure and Altimar is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Azure Holding Group and Altimar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altimar Acquisition Corp and Azure Holding 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 Azure Holding Group are associated (or correlated) with Altimar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altimar Acquisition Corp has no effect on the direction of Azure Holding i.e., Azure Holding and Altimar Acquisition go up and down completely randomly.
Pair Corralation between Azure Holding and Altimar Acquisition
If you would invest 5.00 in Altimar Acquisition Corp on October 16, 2024 and sell it today you would earn a total of 0.00 from holding Altimar Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Azure Holding Group vs. Altimar Acquisition Corp
Performance |
| Timeline |
| Azure Holding Group |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Azure Holding and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azure Holding and Altimar Acquisition
The main advantage of trading using opposite Azure Holding and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azure Holding position performs unexpectedly, Altimar 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 Altimar Acquisition will offset losses from the drop in Altimar Acquisition's long position.| Azure Holding vs. Insteel Industries | Azure Holding vs. NH Foods Ltd | Azure Holding vs. Vital Farms | Azure Holding vs. Highway Holdings Limited |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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