Correlation Between Altimar Acquisition and Blockchain Industries

Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Blockchain Industries 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 Blockchain Industries 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 Blockchain Industries, you can compare the effects of market volatilities on Altimar Acquisition and Blockchain Industries 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 Blockchain Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Blockchain Industries.

Diversification Opportunities for Altimar Acquisition and Blockchain Industries

0.32

Correlation Coefficient

Altimar Acquisition  Blockchain Industries

Weak diversification

The 3 months correlation between Altimar and Blockchain is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Blockchain Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Industries 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 Blockchain Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Industries has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Blockchain Industries go up and down completely randomly.

Pair Corralation between Altimar Acquisition and Blockchain Industries

If you would invest  1.80  in Blockchain Industries on September 17, 2024 and sell it today you would earn a total of  0.60  from holding Blockchain Industries or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Altimar Acquisition Corp  vs.  Blockchain Industries

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.

Blockchain Industries

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blockchain Industries are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Blockchain Industries demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altimar Acquisition and Blockchain Industries

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

The idea behind Altimar Acquisition Corp and Blockchain Industries 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.