Correlation Between Altimar Acquisition and IFIN Old

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

Diversification Opportunities for Altimar Acquisition and IFIN Old

-0.27

Correlation Coefficient

Altimar Acquisition  IFIN Old

Very good diversification

The 3 months correlation between Altimar and IFIN is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and IFIN Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IFIN Old 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 IFIN Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IFIN Old has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and IFIN Old go up and down completely randomly.

Pair Corralation between Altimar Acquisition and IFIN Old

If you would invest (100.00) in IFIN Old on October 8, 2024 and sell it today you would earn a total of  100.00  from holding IFIN Old or generate -100.0% return on investment over 90 days.

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

Altimar Acquisition Corp  vs.  IFIN Old

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.

IFIN Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IFIN Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, IFIN Old is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Altimar Acquisition and IFIN Old

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

The idea behind Altimar Acquisition Corp and IFIN Old 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.