Correlation Between Oasis Hotel and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both Oasis Hotel 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 Oasis Hotel and Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and Altimar Acquisition Corp, you can compare the effects of market volatilities on Oasis Hotel 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 Oasis Hotel with a short position of Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and Altimar Acquisition.
Diversification Opportunities for Oasis Hotel and Altimar Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oasis and Altimar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort 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 Oasis Hotel 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 Oasis Hotel Resort 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 Oasis Hotel i.e., Oasis Hotel and Altimar Acquisition go up and down completely randomly.
Pair Corralation between Oasis Hotel and Altimar Acquisition
Given the investment horizon of 90 days Oasis Hotel Resort is expected to under-perform the Altimar Acquisition. But the pink sheet apears to be less risky and, when comparing its historical volatility, Oasis Hotel Resort is 35.19 times less risky than Altimar Acquisition. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Altimar Acquisition Corp is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Altimar Acquisition Corp on November 2, 2024 and sell it today you would earn a total of 3.00 from holding Altimar Acquisition Corp or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 3.85% |
| Values | Daily Returns |
Oasis Hotel Resort vs. Altimar Acquisition Corp
Performance |
| Timeline |
| Oasis Hotel Resort |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oasis Hotel and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Hotel and Altimar Acquisition
The main advantage of trading using opposite Oasis Hotel and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel 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.| Oasis Hotel vs. Kilroy Realty Corp | Oasis Hotel vs. BlackRock | Oasis Hotel vs. National Waste Management | Oasis Hotel vs. Douglas Emmett |
| Altimar Acquisition vs. LB Foster | Altimar Acquisition vs. Sunlands Technology Group | Altimar Acquisition vs. Braskem SA Class | Altimar Acquisition vs. Toro |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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