Correlation Between Altimar Acquisition and Sculptor Acquisition
Can any of the company-specific risk be diversified away by investing in both Altimar Acquisition and Sculptor 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 Altimar Acquisition and Sculptor Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altimar Acquisition Corp and Sculptor Acquisition Corp, you can compare the effects of market volatilities on Altimar Acquisition and Sculptor 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 Altimar Acquisition with a short position of Sculptor Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimar Acquisition and Sculptor Acquisition.
Diversification Opportunities for Altimar Acquisition and Sculptor Acquisition
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Altimar and Sculptor is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Altimar Acquisition Corp and Sculptor Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sculptor Acquisition Corp and Altimar 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 Altimar Acquisition Corp are associated (or correlated) with Sculptor Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sculptor Acquisition Corp has no effect on the direction of Altimar Acquisition i.e., Altimar Acquisition and Sculptor Acquisition go up and down completely randomly.
Pair Corralation between Altimar Acquisition and Sculptor Acquisition
Assuming the 90 days horizon Altimar Acquisition Corp is expected to generate 2368.8 times more return on investment than Sculptor Acquisition. However, Altimar Acquisition is 2368.8 times more volatile than Sculptor Acquisition Corp. It trades about 0.38 of its potential returns per unit of risk. Sculptor Acquisition Corp is currently generating about 0.25 per unit of risk. If you would invest 1.00 in Altimar Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Altimar Acquisition Corp or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.08% |
| Values | Daily Returns |
Altimar Acquisition Corp vs. Sculptor Acquisition Corp
Performance |
| Timeline |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sculptor Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altimar Acquisition and Sculptor Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimar Acquisition and Sculptor Acquisition
The main advantage of trading using opposite Altimar Acquisition and Sculptor Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimar Acquisition position performs unexpectedly, Sculptor 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 Sculptor Acquisition will offset losses from the drop in Sculptor Acquisition's long position.| Altimar Acquisition vs. Kite Realty Group | Altimar Acquisition vs. SunLink Health Systems | Altimar Acquisition vs. National Vision Holdings | Altimar Acquisition vs. BBB Foods |
| Sculptor Acquisition vs. Cartesian Growth | Sculptor Acquisition vs. Oak Woods Acquisition | Sculptor Acquisition vs. Pyrophyte Acquisition Corp | Sculptor Acquisition vs. Manaris Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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