Correlation Between Berenson Acquisition and Viveon Health
Can any of the company-specific risk be diversified away by investing in both Berenson Acquisition and Viveon Health 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 Berenson Acquisition and Viveon Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berenson Acquisition Corp and Viveon Health Acquisition, you can compare the effects of market volatilities on Berenson Acquisition and Viveon Health 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 Berenson Acquisition with a short position of Viveon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berenson Acquisition and Viveon Health.
Diversification Opportunities for Berenson Acquisition and Viveon Health
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Berenson and Viveon is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Berenson Acquisition Corp and Viveon Health Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viveon Health Acquisition and Berenson 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 Berenson Acquisition Corp are associated (or correlated) with Viveon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viveon Health Acquisition has no effect on the direction of Berenson Acquisition i.e., Berenson Acquisition and Viveon Health go up and down completely randomly.
Pair Corralation between Berenson Acquisition and Viveon Health
If you would invest 1,105 in Viveon Health Acquisition on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Viveon Health Acquisition 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 |
Berenson Acquisition Corp vs. Viveon Health Acquisition
Performance |
| Timeline |
| Berenson Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Viveon Health Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Berenson Acquisition and Viveon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berenson Acquisition and Viveon Health
The main advantage of trading using opposite Berenson Acquisition and Viveon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berenson Acquisition position performs unexpectedly, Viveon Health 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 Viveon Health will offset losses from the drop in Viveon Health's long position.The idea behind Berenson Acquisition Corp and Viveon Health Acquisition 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.| Viveon Health vs. Finnovate Acquisition Corp | Viveon Health vs. IX Acquisition Corp | Viveon Health vs. LatAmGrowth SPAC |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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