Correlation Between Athena Technology and Concord Acquisition

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Athena Technology and Concord Acquisition 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 Concord Acquisition 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 Concord Acquisition Corp, you can compare the effects of market volatilities on Athena Technology and Concord Acquisition 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 Concord Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athena Technology and Concord Acquisition.

Diversification Opportunities for Athena Technology and Concord Acquisition

-0.11
  Correlation Coefficient

Good diversification

The 3 months correlation between Athena and Concord is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Athena Technology Acquisition and Concord Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Acquisition 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 Concord Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Acquisition Corp has no effect on the direction of Athena Technology i.e., Athena Technology and Concord Acquisition go up and down completely randomly.

Pair Corralation between Athena Technology and Concord Acquisition

If you would invest  1,040  in Concord Acquisition Corp on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Concord Acquisition Corp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy1.67%
ValuesDaily Returns

Athena Technology Acquisition  vs.  Concord Acquisition Corp

 Performance 
       Timeline  
Athena Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Athena Technology Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
JavaScript chart by amCharts 3.21.15NovDecDecJan12468101214
Concord Acquisition Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Concord Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Concord Acquisition is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Athena Technology and Concord Acquisition Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Athena Technology and Concord Acquisition

The main advantage of trading using opposite Athena Technology and Concord Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athena Technology position performs unexpectedly, Concord Acquisition 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 Concord Acquisition will offset losses from the drop in Concord Acquisition's long position.
The idea behind Athena Technology Acquisition and Concord Acquisition Corp 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.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Money Managers
Screen money managers from public funds and ETFs managed around the world
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.