Correlation Between Broad Capital and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both Broad Capital 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 Broad Capital and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broad Capital Acquisition and Altimar Acquisition Corp, you can compare the effects of market volatilities on Broad Capital 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 Broad Capital with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broad Capital and Altimar Acquisition.
Diversification Opportunities for Broad Capital and Altimar Acquisition
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Broad and Altimar is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Broad Capital Acquisition 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 Broad Capital 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 Broad Capital Acquisition 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 Broad Capital i.e., Broad Capital and Altimar Acquisition go up and down completely randomly.
Pair Corralation between Broad Capital and Altimar Acquisition
Assuming the 90 days horizon Broad Capital is expected to generate 5376.88 times less return on investment than Altimar Acquisition. But when comparing it to its historical volatility, Broad Capital Acquisition is 302.02 times less risky than Altimar Acquisition. It trades about 0.02 of its potential returns per unit of risk. Altimar Acquisition Corp is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Altimar Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Altimar Acquisition Corp or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.03% |
| Values | Daily Returns |
Broad Capital Acquisition vs. Altimar Acquisition Corp
Performance |
| Timeline |
| Broad Capital Acquisition |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Broad Capital and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broad Capital and Altimar Acquisition
The main advantage of trading using opposite Broad Capital and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broad Capital 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.| Broad Capital vs. Finnovate Acquisition Corp | Broad Capital vs. Welsbach Technology Metals | Broad Capital vs. Healthcare AI Acquisition | Broad Capital vs. Metal Sky Star |
| Altimar Acquisition vs. Kite Realty Group | Altimar Acquisition vs. SunLink Health Systems | Altimar Acquisition vs. National Vision Holdings | Altimar Acquisition vs. BBB Foods |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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