Correlation Between CECO Environmental and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both CECO Environmental 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 CECO Environmental and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CECO Environmental Corp and Altimar Acquisition Corp, you can compare the effects of market volatilities on CECO Environmental 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 CECO Environmental with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of CECO Environmental and Altimar Acquisition.
Diversification Opportunities for CECO Environmental and Altimar Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CECO and Altimar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CECO Environmental Corp 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 CECO Environmental 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 CECO Environmental Corp 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 CECO Environmental i.e., CECO Environmental and Altimar Acquisition go up and down completely randomly.
Pair Corralation between CECO Environmental and Altimar Acquisition
If you would invest 2,531 in CECO Environmental Corp on December 4, 2024 and sell it today you would lose (99.00) from holding CECO Environmental Corp or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CECO Environmental Corp vs. Altimar Acquisition Corp
Performance |
| Timeline |
| CECO Environmental Corp |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
CECO Environmental and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CECO Environmental and Altimar Acquisition
The main advantage of trading using opposite CECO Environmental and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CECO Environmental 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.| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
| Altimar Acquisition vs. Artisan Partners Asset | Altimar Acquisition vs. MedX Health Corp | Altimar Acquisition vs. Mesa Air Group | Altimar Acquisition vs. Yuexiu Transport Infrastructure |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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