Correlation Between Sculptor Acquisition and Genesis Growth

Can any of the company-specific risk be diversified away by investing in both Sculptor Acquisition and Genesis 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 Genesis 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 Genesis Growth Tech, you can compare the effects of market volatilities on Sculptor Acquisition and Genesis 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 Genesis Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sculptor Acquisition and Genesis Growth.

Diversification Opportunities for Sculptor Acquisition and Genesis Growth

0.69

Correlation Coefficient

Sculptor Acquisition  Genesis Growth

Poor diversification

The 3 months correlation between Sculptor and Genesis is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sculptor Acquisition Corp and Genesis Growth Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Growth Tech 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 Genesis Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Growth Tech has no effect on the direction of Sculptor Acquisition i.e., Sculptor Acquisition and Genesis Growth go up and down completely randomly.

Pair Corralation between Sculptor Acquisition and Genesis Growth

If you would invest  2,157  in Genesis Growth Tech on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Genesis Growth Tech or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Sculptor Acquisition Corp  vs.  Genesis Growth Tech

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.

Genesis Growth Tech

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Sculptor Acquisition and Genesis Growth

The main advantage of trading using opposite Sculptor Acquisition and Genesis Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sculptor Acquisition position performs unexpectedly, Genesis 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 Genesis Growth will offset losses from the drop in Genesis Growth's long position.

The idea behind Sculptor Acquisition Corp and Genesis Growth Tech 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.