Correlation Between Athena Technology and Artemis Strategic

Can any of the company-specific risk be diversified away by investing in both Athena Technology and Artemis Strategic 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 Athena Technology and Artemis Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Athena Technology Acquisition and Artemis Strategic Investment, you can compare the effects of market volatilities on Athena Technology and Artemis Strategic 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 Athena Technology with a short position of Artemis Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athena Technology and Artemis Strategic.

Diversification Opportunities for Athena Technology and Artemis Strategic

0.4

Correlation Coefficient

Athena Technology  Artemis Strategic

Very weak diversification

The 3 months correlation between Athena and Artemis is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Athena Technology Acquisition and Artemis Strategic Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Strategic and Athena Technology 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 Athena Technology Acquisition are associated (or correlated) with Artemis Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Strategic has no effect on the direction of Athena Technology i.e., Athena Technology and Artemis Strategic go up and down completely randomly.

Pair Corralation between Athena Technology and Artemis Strategic

Given the investment horizon of 90 days Athena Technology is expected to generate 1.05 times less return on investment than Artemis Strategic. In addition to that, Athena Technology is 4.01 times more volatile than Artemis Strategic Investment. It trades about 0.04 of its total potential returns per unit of risk. Artemis Strategic Investment is currently generating about 0.16 per unit of volatility. If you would invest  1,007  in Artemis Strategic Investment on August 31, 2024 and sell it today you would earn a total of  61.00  from holding Artemis Strategic Investment or generate 6.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	30.91%
Values	Daily Returns

Athena Technology Acquisition  vs.  Artemis Strategic Investment

Athena Technology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Athena Technology Acquisition are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Athena Technology is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Artemis Strategic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artemis Strategic Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Artemis Strategic is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Athena Technology and Artemis Strategic

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

The idea behind Athena Technology Acquisition and Artemis Strategic Investment 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.