Correlation Between Sculptor Acquisition and KAT Exploration
Can any of the company-specific risk be diversified away by investing in both Sculptor Acquisition and KAT Exploration 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 Sculptor Acquisition and KAT Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sculptor Acquisition Corp and KAT Exploration, you can compare the effects of market volatilities on Sculptor Acquisition and KAT Exploration 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 Sculptor Acquisition with a short position of KAT Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sculptor Acquisition and KAT Exploration.
Diversification Opportunities for Sculptor Acquisition and KAT Exploration
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sculptor and KAT is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sculptor Acquisition Corp and KAT Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAT Exploration and Sculptor 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 Sculptor Acquisition Corp are associated (or correlated) with KAT Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAT Exploration has no effect on the direction of Sculptor Acquisition i.e., Sculptor Acquisition and KAT Exploration go up and down completely randomly.
Pair Corralation between Sculptor Acquisition and KAT Exploration
If you would invest 0.07 in KAT Exploration on September 12, 2024 and sell it today you would lose (0.04) from holding KAT Exploration or give up 57.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.28% |
| Values | Daily Returns |
Sculptor Acquisition Corp vs. KAT Exploration
Performance |
| Timeline |
| Sculptor Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KAT Exploration |
Sculptor Acquisition and KAT Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sculptor Acquisition and KAT Exploration
The main advantage of trading using opposite Sculptor Acquisition and KAT Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sculptor Acquisition position performs unexpectedly, KAT Exploration 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 KAT Exploration will offset losses from the drop in KAT Exploration's long position.| Sculptor Acquisition vs. Cartesian Growth | Sculptor Acquisition vs. Oak Woods Acquisition | Sculptor Acquisition vs. Pyrophyte Acquisition Corp | Sculptor Acquisition vs. Manaris Corp |
| KAT Exploration vs. Advantage Solutions | KAT Exploration vs. Atlas Corp | KAT Exploration vs. PureCycle Technologies | KAT Exploration vs. WM Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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