Correlation Between Athena Technology and Catcha Investment
Can any of the company-specific risk be diversified away by investing in both Athena Technology and Catcha Investment 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 Catcha Investment 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 Catcha Investment Corp, you can compare the effects of market volatilities on Athena Technology and Catcha Investment 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 Catcha Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athena Technology and Catcha Investment.
Diversification Opportunities for Athena Technology and Catcha Investment
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Athena and Catcha is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Athena Technology Acquisition and Catcha Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catcha Investment Corp 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 Catcha Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catcha Investment Corp has no effect on the direction of Athena Technology i.e., Athena Technology and Catcha Investment go up and down completely randomly.
Pair Corralation between Athena Technology and Catcha Investment
If you would invest 1,144 in Athena Technology Acquisition on September 10, 2024 and sell it today you would lose (11.00) from holding Athena Technology Acquisition or give up 0.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 1.54% |
Values | Daily Returns |
Athena Technology Acquisition vs. Catcha Investment Corp
Performance |
Timeline |
Athena Technology |
Catcha Investment Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Athena Technology and Catcha Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Athena Technology and Catcha Investment
The main advantage of trading using opposite Athena Technology and Catcha Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athena Technology position performs unexpectedly, Catcha Investment 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 Catcha Investment will offset losses from the drop in Catcha Investment's long position.Athena Technology vs. Thunder Bridge Capital | Athena Technology vs. Aquagold International | Athena Technology vs. Morningstar Unconstrained Allocation | Athena Technology vs. Thrivent High Yield |
Check out your portfolio center.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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