Correlation Between Altimar Acquisition and Post Holdings

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

Diversification Opportunities for Altimar Acquisition and Post Holdings

0.0

Correlation Coefficient

Altimar Acquisition  Post Holdings

Pay attention - limited upside

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

Pair Corralation between Altimar Acquisition and Post Holdings

If you would invest (100.00) in Post Holdings Partnering on December 25, 2024 and sell it today you would earn a total of  100.00  from holding Post Holdings Partnering 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.  Post Holdings Partnering

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.

Post Holdings Partnering

Risk-Adjusted Performance

Very Weak

Over the last 90 days Post Holdings Partnering has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Post Holdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Altimar Acquisition and Post Holdings

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

The idea behind Altimar Acquisition Corp and Post Holdings Partnering 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.