Correlation Between Athena Technology and ST Energy
Can any of the company-specific risk be diversified away by investing in both Athena Technology and ST Energy 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 ST Energy 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 ST Energy Transition, you can compare the effects of market volatilities on Athena Technology and ST Energy 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 ST Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athena Technology and ST Energy.
Diversification Opportunities for Athena Technology and ST Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Athena and STET is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Athena Technology Acquisition and ST Energy Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ST Energy Transition 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 ST Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ST Energy Transition has no effect on the direction of Athena Technology i.e., Athena Technology and ST Energy go up and down completely randomly.
Pair Corralation between Athena Technology and ST Energy
If you would invest (100.00) in ST Energy Transition on December 2, 2024 and sell it today you would earn a total of 100.00 from holding ST Energy Transition 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 |
Athena Technology Acquisition vs. ST Energy Transition
Performance |
Timeline |
Athena Technology |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ST Energy Transition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Athena Technology and ST Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Athena Technology and ST Energy
The main advantage of trading using opposite Athena Technology and ST Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athena Technology position performs unexpectedly, ST Energy 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 ST Energy will offset losses from the drop in ST Energy's long position.Athena Technology vs. Alpha Star Acquisition | Athena Technology vs. Alpha One | Athena Technology vs. A SPAC II |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |