Correlation Between Four Leaf and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both Four Leaf 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 Four Leaf and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Four Leaf Acquisition and Altimar Acquisition Corp, you can compare the effects of market volatilities on Four Leaf 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 Four Leaf with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Four Leaf and Altimar Acquisition.
Diversification Opportunities for Four Leaf and Altimar Acquisition
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Four and Altimar is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Four Leaf 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 Four Leaf 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 Four Leaf 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 Four Leaf i.e., Four Leaf and Altimar Acquisition go up and down completely randomly.
Pair Corralation between Four Leaf and Altimar Acquisition
If you would invest 1,043 in Four Leaf Acquisition on October 16, 2024 and sell it today you would earn a total of 67.00 from holding Four Leaf Acquisition or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.29% |
| Values | Daily Returns |
Four Leaf Acquisition vs. Altimar Acquisition Corp
Performance |
| Timeline |
| Four Leaf Acquisition |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Four Leaf and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Four Leaf and Altimar Acquisition
The main advantage of trading using opposite Four Leaf and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Four Leaf 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.| Four Leaf vs. Nuvalent | Four Leaf vs. Catalyst Pharmaceuticals | Four Leaf vs. NH Foods Ltd | Four Leaf vs. Abcellera Biologics |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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