Correlation Between Sculptor Acquisition and Cartesian Growth
Can any of the company-specific risk be diversified away by investing in both Sculptor Acquisition and Cartesian Growth 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 Cartesian Growth 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 Cartesian Growth, you can compare the effects of market volatilities on Sculptor Acquisition and Cartesian Growth 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 Cartesian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sculptor Acquisition and Cartesian Growth.
Diversification Opportunities for Sculptor Acquisition and Cartesian Growth
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sculptor and Cartesian is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sculptor Acquisition Corp and Cartesian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartesian Growth 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 Cartesian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartesian Growth has no effect on the direction of Sculptor Acquisition i.e., Sculptor Acquisition and Cartesian Growth go up and down completely randomly.
Pair Corralation between Sculptor Acquisition and Cartesian Growth
If you would invest 1,166 in Cartesian Growth on November 3, 2024 and sell it today you would earn a total of 10.00 from holding Cartesian Growth or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sculptor Acquisition Corp vs. Cartesian Growth
Performance |
| Timeline |
| Sculptor Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cartesian Growth |
Sculptor Acquisition and Cartesian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sculptor Acquisition and Cartesian Growth
The main advantage of trading using opposite Sculptor Acquisition and Cartesian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sculptor Acquisition position performs unexpectedly, Cartesian Growth 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 Cartesian Growth will offset losses from the drop in Cartesian Growth's long position.| Sculptor Acquisition vs. Cartesian Growth | Sculptor Acquisition vs. Oak Woods Acquisition | Sculptor Acquisition vs. Manaris Corp | Sculptor Acquisition vs. Global Blockchain Acquisition |
| Cartesian Growth vs. Oak Woods Acquisition | Cartesian Growth vs. Embrace Change Acquisition | Cartesian Growth vs. Bannix Acquisition Corp | Cartesian Growth vs. Global Blockchain Acquisition |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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