Correlation Between Sizzle Acquisition and L Catterton
Can any of the company-specific risk be diversified away by investing in both Sizzle Acquisition and L Catterton 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 Sizzle Acquisition and L Catterton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sizzle Acquisition Corp and L Catterton Asia, you can compare the effects of market volatilities on Sizzle Acquisition and L Catterton 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 Sizzle Acquisition with a short position of L Catterton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sizzle Acquisition and L Catterton.
Diversification Opportunities for Sizzle Acquisition and L Catterton
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sizzle and LCAAW is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sizzle Acquisition Corp and L Catterton Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Catterton Asia and Sizzle 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 Sizzle Acquisition Corp are associated (or correlated) with L Catterton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Catterton Asia has no effect on the direction of Sizzle Acquisition i.e., Sizzle Acquisition and L Catterton go up and down completely randomly.
Pair Corralation between Sizzle Acquisition and L Catterton
If you would invest 49.00 in L Catterton Asia on September 2, 2024 and sell it today you would earn a total of 0.00 from holding L Catterton Asia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sizzle Acquisition Corp vs. L Catterton Asia
Performance |
| Timeline |
| Sizzle Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| L Catterton Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sizzle Acquisition and L Catterton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sizzle Acquisition and L Catterton
The main advantage of trading using opposite Sizzle Acquisition and L Catterton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sizzle Acquisition position performs unexpectedly, L Catterton 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 L Catterton will offset losses from the drop in L Catterton's long position.| Sizzle Acquisition vs. KAT Exploration | Sizzle Acquisition vs. Aqua Power Systems | Sizzle Acquisition vs. Metal Sky Star | Sizzle Acquisition vs. New Generation Consumer |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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