Correlation Between New Generation and Sculptor Acquisition
Can any of the company-specific risk be diversified away by investing in both New Generation 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 New Generation and Sculptor Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Generation Consumer and Sculptor Acquisition Corp, you can compare the effects of market volatilities on New Generation 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 New Generation with a short position of Sculptor Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Generation and Sculptor Acquisition.
Diversification Opportunities for New Generation and Sculptor Acquisition
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between New and Sculptor is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding New Generation Consumer 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 New Generation 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 New Generation Consumer 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 New Generation i.e., New Generation and Sculptor Acquisition go up and down completely randomly.
Pair Corralation between New Generation and Sculptor Acquisition
If you would invest 0.12 in New Generation Consumer on September 4, 2024 and sell it today you would lose (0.05) from holding New Generation Consumer or give up 41.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
New Generation Consumer vs. Sculptor Acquisition Corp
Performance |
| Timeline |
| New Generation Consumer |
| Sculptor Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
New Generation and Sculptor Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Generation and Sculptor Acquisition
The main advantage of trading using opposite New Generation and Sculptor Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Generation 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.| New Generation vs. Xtra Energy Corp | New Generation vs. Arsenal Digital Holdings | New Generation vs. UHF Logistics Group | New Generation vs. XCana Petroleum |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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