Correlation Between Altitude Acquisition and Fusion Fuel

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

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

Diversification Opportunities for Altitude Acquisition and Fusion Fuel

0.0

Correlation Coefficient

Altitude Acquisition  Fusion Fuel

Pay attention - limited upside

The 3 months correlation between Altitude and Fusion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altitude Acquisition Corp and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green and Altitude 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 Altitude Acquisition Corp are associated (or correlated) with Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of Altitude Acquisition i.e., Altitude Acquisition and Fusion Fuel go up and down completely randomly.

Pair Corralation between Altitude Acquisition and Fusion Fuel

If you would invest  2.25  in Fusion Fuel Green on December 30, 2024 and sell it today you would lose (1.35) from holding Fusion Fuel Green or give up 60.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Altitude Acquisition Corp  vs.  Fusion Fuel Green

Altitude Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altitude Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Altitude Acquisition is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Fusion Fuel Green

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fusion Fuel Green has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Fusion Fuel is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Altitude Acquisition and Fusion Fuel

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

The idea behind Altitude Acquisition Corp and Fusion Fuel Green 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.

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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.