Correlation Between RCI Hospitality and Altimar Acquisition

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

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

Diversification Opportunities for RCI Hospitality and Altimar Acquisition

0.0

Correlation Coefficient

RCI Hospitality  Altimar Acquisition

Pay attention - limited upside

The 3 months correlation between RCI and Altimar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RCI Hospitality Holdings 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 RCI Hospitality 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 RCI Hospitality Holdings 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 RCI Hospitality i.e., RCI Hospitality and Altimar Acquisition go up and down completely randomly.

Pair Corralation between RCI Hospitality and Altimar Acquisition

If you would invest (100.00) in Altimar Acquisition Corp on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Altimar Acquisition Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

RCI Hospitality Holdings  vs.  Altimar Acquisition Corp

RCI Hospitality Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days RCI Hospitality Holdings 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 fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Altimar Acquisition Corp

Risk-Adjusted Performance

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

Pair Trading with RCI Hospitality and Altimar Acquisition

The main advantage of trading using opposite RCI Hospitality and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCI Hospitality 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 RCI Hospitality Holdings 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.