Correlation Between KAT Exploration and Sculptor Acquisition
Can any of the company-specific risk be diversified away by investing in both KAT Exploration 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 KAT Exploration and Sculptor Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KAT Exploration and Sculptor Acquisition Corp, you can compare the effects of market volatilities on KAT Exploration 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 KAT Exploration with a short position of Sculptor Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of KAT Exploration and Sculptor Acquisition.
Diversification Opportunities for KAT Exploration and Sculptor Acquisition
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KAT and Sculptor is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding KAT Exploration 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 KAT Exploration 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 KAT Exploration 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 KAT Exploration i.e., KAT Exploration and Sculptor Acquisition go up and down completely randomly.
Pair Corralation between KAT Exploration and Sculptor Acquisition
If you would invest 0.17 in KAT Exploration on September 4, 2024 and sell it today you would lose (0.15) from holding KAT Exploration or give up 88.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.41% |
| Values | Daily Returns |
KAT Exploration vs. Sculptor Acquisition Corp
Performance |
| Timeline |
| KAT Exploration |
| Sculptor Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KAT Exploration and Sculptor Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KAT Exploration and Sculptor Acquisition
The main advantage of trading using opposite KAT Exploration and Sculptor Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KAT Exploration 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.| KAT Exploration vs. Southern ITS International | KAT Exploration vs. UHF Logistics Group | KAT Exploration vs. Intl Star | KAT Exploration vs. Church Crawford |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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