Correlation Between Goldenstone Acquisition and Altimar Acquisition

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

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

Diversification Opportunities for Goldenstone Acquisition and Altimar Acquisition

0.44

Correlation Coefficient

Goldenstone Acquisition  Altimar Acquisition

Very weak diversification

The 3 months correlation between Goldenstone and Altimar is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Goldenstone Acquisition and Altimar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altimar Acquisition Corp and Goldenstone 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 Goldenstone Acquisition are associated (or correlated) with Altimar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altimar Acquisition Corp has no effect on the direction of Goldenstone Acquisition i.e., Goldenstone Acquisition and Altimar Acquisition go up and down completely randomly.

Pair Corralation between Goldenstone Acquisition and Altimar Acquisition

Given the investment horizon of 90 days Goldenstone Acquisition is expected to generate 3148.17 times less return on investment than Altimar Acquisition. But when comparing it to its historical volatility, Goldenstone Acquisition is 449.93 times less risky than Altimar Acquisition. It trades about 0.05 of its potential returns per unit of risk. Altimar Acquisition Corp is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  0.10  in Altimar Acquisition Corp on September 18, 2024 and sell it today you would earn a total of  4.90  from holding Altimar Acquisition Corp or generate 4900.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	4.44%
Values	Daily Returns

Goldenstone Acquisition  vs.  Altimar Acquisition Corp

Goldenstone Acquisition

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Goldenstone Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Goldenstone Acquisition is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Altimar Acquisition Corp

Risk-Adjusted Performance

0 of 100

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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Goldenstone Acquisition and Altimar Acquisition

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

The idea behind Goldenstone Acquisition and Altimar 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.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.