Correlation Between Altimar Acquisition and Growth For

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

Diversification Opportunities for Altimar Acquisition and Growth For

0.01

Correlation Coefficient

Altimar Acquisition  Growth For

Significant diversification

The 3 months correlation between Altimar and Growth is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Growth For Good in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth For Good 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 Growth For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth For Good has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Growth For go up and down completely randomly.

Pair Corralation between Altimar Acquisition and Growth For

Assuming the 90 days horizon Altimar Acquisition Corp is expected to generate 1374.45 times more return on investment than Growth For. However, Altimar Acquisition is 1374.45 times more volatile than Growth For Good. It trades about 0.36 of its potential returns per unit of risk. Growth For Good is currently generating about 0.2 per unit of risk. If you would invest  0.10  in Altimar Acquisition Corp on September 30, 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	16.3%
Values	Daily Returns

Altimar Acquisition Corp  vs.  Growth For Good

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

Growth For Good

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Growth For Good has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Growth For is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Altimar Acquisition and Growth For

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

The idea behind Altimar Acquisition Corp and Growth For Good 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.