Correlation Between Athena Consumer and Altimar Acquisition

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

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

Diversification Opportunities for Athena Consumer and Altimar Acquisition

0.1

Correlation Coefficient

Athena Consumer  Altimar Acquisition

Average diversification

The 3 months correlation between Athena and Altimar is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Athena Consumer 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 Athena Consumer 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 Athena Consumer 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 Athena Consumer i.e., Athena Consumer and Altimar Acquisition go up and down completely randomly.

Pair Corralation between Athena Consumer and Altimar Acquisition

Given the investment horizon of 90 days Athena Consumer is expected to generate 1250.16 times less return on investment than Altimar Acquisition. But when comparing it to its historical volatility, Athena Consumer Acquisition is 241.25 times less risky than Altimar Acquisition. It trades about 0.07 of its potential returns per unit of risk. Altimar Acquisition Corp is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  0.10  in Altimar Acquisition Corp on September 28, 2024 and sell it today you would earn a total of  4.90  from holding Altimar Acquisition Corp or generate 4900.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	16.18%
Values	Daily Returns

Athena Consumer Acquisition  vs.  Altimar Acquisition Corp

Athena Consumer Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

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

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. Despite nearly stable basic indicators, Altimar Acquisition is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Athena Consumer and Altimar Acquisition

The main advantage of trading using opposite Athena Consumer and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athena Consumer 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 Athena Consumer Acquisition 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.