Correlation Between SilverBox Corp and Sculptor Acquisition

Can any of the company-specific risk be diversified away by investing in both SilverBox Corp 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 SilverBox Corp and Sculptor Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SilverBox Corp III and Sculptor Acquisition Corp, you can compare the effects of market volatilities on SilverBox Corp 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 SilverBox Corp with a short position of Sculptor Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of SilverBox Corp and Sculptor Acquisition.

Diversification Opportunities for SilverBox Corp and Sculptor Acquisition

0.5

Correlation Coefficient

SilverBox Corp  Sculptor Acquisition

Very weak diversification

The 3 months correlation between SilverBox and Sculptor is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SilverBox Corp III 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 SilverBox Corp 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 SilverBox Corp III 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 SilverBox Corp i.e., SilverBox Corp and Sculptor Acquisition go up and down completely randomly.

Pair Corralation between SilverBox Corp and Sculptor Acquisition

If you would invest  1,060  in SilverBox Corp III on September 26, 2024 and sell it today you would earn a total of  24.00  from holding SilverBox Corp III or generate 2.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.1%
Values	Daily Returns

SilverBox Corp III  vs.  Sculptor Acquisition Corp

SilverBox Corp III

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days SilverBox Corp III has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SilverBox Corp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Sculptor Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sculptor Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sculptor Acquisition is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SilverBox Corp and Sculptor Acquisition

The main advantage of trading using opposite SilverBox Corp and Sculptor Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SilverBox Corp 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.

The idea behind SilverBox Corp III and Sculptor Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.