Correlation Between Altimar Acquisition and Gardiner Healthcare

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

Diversification Opportunities for Altimar Acquisition and Gardiner Healthcare

0.0

Correlation Coefficient

Altimar Acquisition  Gardiner Healthcare

Pay attention - limited upside

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

Pair Corralation between Altimar Acquisition and Gardiner Healthcare

If you would invest (100.00) in Gardiner Healthcare Acquisitions on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Gardiner Healthcare Acquisitions or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Altimar Acquisition Corp  vs.  Gardiner Healthcare Acquisitio

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Gardiner Healthcare

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gardiner Healthcare Acquisitions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Gardiner Healthcare 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 Altimar Acquisition and Gardiner Healthcare

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

The idea behind Altimar Acquisition Corp and Gardiner Healthcare Acquisitions 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.