Correlation Between Altimar Acquisition and CTR Investments

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

Diversification Opportunities for Altimar Acquisition and CTR Investments

0.0

Correlation Coefficient

Altimar Acquisition  CTR Investments

Pay attention - limited upside

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

Pair Corralation between Altimar Acquisition and CTR Investments

If you would invest  0.03  in CTR Investments Consulting on December 2, 2024 and sell it today you would lose (0.01) from holding CTR Investments Consulting or give up 33.33% of portfolio value over 90 days.

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

Altimar Acquisition Corp  vs.  CTR Investments Consulting

Altimar Acquisition Corp

Risk-Adjusted Performance

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.

CTR Investments Cons

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CTR Investments Consulting are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, CTR Investments showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altimar Acquisition and CTR Investments

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

The idea behind Altimar Acquisition Corp and CTR Investments Consulting 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.