Correlation Between Post Holdings and Altimar Acquisition

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

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

Diversification Opportunities for Post Holdings and Altimar Acquisition

0.21

Correlation Coefficient

Post Holdings  Altimar Acquisition

Modest diversification

The 3 months correlation between Post and Altimar is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Post Holdings Partnering 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 Post Holdings 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 Post Holdings Partnering 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 Post Holdings i.e., Post Holdings and Altimar Acquisition go up and down completely randomly.

Pair Corralation between Post Holdings and Altimar 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 Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Post Holdings Partnering  vs.  Altimar Acquisition Corp

Post Holdings Partnering

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Post Holdings Partnering has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Post Holdings is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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.

Pair Trading with Post Holdings and Altimar Acquisition

The main advantage of trading using opposite Post Holdings and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post Holdings 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.

The idea behind Post Holdings Partnering and Altimar 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.