Correlation Between Elliott Opportunity and Athena Technology
Can any of the company-specific risk be diversified away by investing in both Elliott Opportunity and Athena Technology 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 Elliott Opportunity and Athena Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elliott Opportunity II and Athena Technology Acquisition, you can compare the effects of market volatilities on Elliott Opportunity and Athena Technology 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 Elliott Opportunity with a short position of Athena Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elliott Opportunity and Athena Technology.
Diversification Opportunities for Elliott Opportunity and Athena Technology
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elliott and Athena is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Elliott Opportunity II and Athena Technology Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athena Technology and Elliott Opportunity 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 Elliott Opportunity II are associated (or correlated) with Athena Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athena Technology has no effect on the direction of Elliott Opportunity i.e., Elliott Opportunity and Athena Technology go up and down completely randomly.
Pair Corralation between Elliott Opportunity and Athena Technology
If you would invest 100.00 in Athena Technology Acquisition on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Athena Technology Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elliott Opportunity II vs. Athena Technology Acquisition
Performance |
| Timeline |
| Elliott Opportunity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Athena Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elliott Opportunity and Athena Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elliott Opportunity and Athena Technology
The main advantage of trading using opposite Elliott Opportunity and Athena Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elliott Opportunity position performs unexpectedly, Athena Technology 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 Athena Technology will offset losses from the drop in Athena Technology's long position.| Elliott Opportunity vs. Consilium Acquisition I | Elliott Opportunity vs. Israel Acquisitions Corp | Elliott Opportunity vs. Alchemy Investments Acquisition |
| Athena Technology vs. Alpha Star Acquisition | Athena Technology vs. Alpha One | Athena Technology vs. A SPAC II |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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