Correlation Between Catalyst Pharmaceuticals and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Pharmaceuticals and Altimar Acquisition Corp, you can compare the effects of market volatilities on Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Pharmaceuticals and Altimar Acquisition.
Diversification Opportunities for Catalyst Pharmaceuticals and Altimar Acquisition
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalyst and Altimar is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals 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 Catalyst Pharmaceuticals i.e., Catalyst Pharmaceuticals and Altimar Acquisition go up and down completely randomly.
Pair Corralation between Catalyst Pharmaceuticals and Altimar Acquisition
If you would invest 2,175 in Catalyst Pharmaceuticals on September 4, 2024 and sell it today you would earn a total of 78.00 from holding Catalyst Pharmaceuticals or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Catalyst Pharmaceuticals vs. Altimar Acquisition Corp
Performance |
| Timeline |
| Catalyst Pharmaceuticals |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Catalyst Pharmaceuticals and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Pharmaceuticals and Altimar Acquisition
The main advantage of trading using opposite Catalyst Pharmaceuticals and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Pharmaceuticals 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.| Catalyst Pharmaceuticals vs. Day One Biopharmaceuticals | Catalyst Pharmaceuticals vs. Terns Pharmaceuticals | Catalyst Pharmaceuticals vs. X4 Pharmaceuticals | Catalyst Pharmaceuticals vs. Inozyme Pharma |
| Altimar Acquisition vs. Sellas Life Sciences | Altimar Acquisition vs. Catalyst Pharmaceuticals | Altimar Acquisition vs. Diageo PLC ADR | Altimar Acquisition vs. The Coca Cola |
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 Stocks Directory module to find actively traded stocks across global markets.
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