Correlation Between Altimar Acquisition and AltEnergy Acquisition

Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and AltEnergy 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 Altimar Acquisition and AltEnergy Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altimar Acquisition Corp and AltEnergy Acquisition Corp, you can compare the effects of market volatilities on Altimar Acquisition and AltEnergy 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 Altimar Acquisition with a short position of AltEnergy Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and AltEnergy Acquisition.

Diversification Opportunities for Altimar Acquisition and AltEnergy Acquisition

-0.15

Correlation Coefficient

Altimar Acquisition  AltEnergy Acquisition

Good diversification

The 3 months correlation between Altimar and AltEnergy is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and AltEnergy Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AltEnergy Acquisition and Altimar Acquisition 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 Altimar Acquisition Corp are associated (or correlated) with AltEnergy Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AltEnergy Acquisition has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and AltEnergy Acquisition go up and down completely randomly.

Pair Corralation between Altimar Acquisition and AltEnergy Acquisition

If you would invest  1,047  in Altimar Acquisition Corp on September 17, 2024 and sell it today you would earn a total of  0.00  from holding Altimar Acquisition Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	6.25%
Values	Daily Returns

Altimar Acquisition Corp  vs.  AltEnergy Acquisition Corp

Altimar Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altimar Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Altimar Acquisition is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

AltEnergy Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AltEnergy Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Altimar Acquisition and AltEnergy Acquisition

The main advantage of trading using opposite Altimar Acquisition and AltEnergy Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, AltEnergy 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 AltEnergy Acquisition will offset losses from the drop in AltEnergy Acquisition's long position.

The idea behind Altimar Acquisition Corp and AltEnergy Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.