Correlation Between LAMF Global and OCA Acquisition
Can any of the company-specific risk be diversified away by investing in both LAMF Global and OCA 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 LAMF Global and OCA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LAMF Global Ventures and OCA Acquisition Corp, you can compare the effects of market volatilities on LAMF Global and OCA 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 LAMF Global with a short position of OCA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAMF Global and OCA Acquisition.
Diversification Opportunities for LAMF Global and OCA Acquisition
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LAMF and OCA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding LAMF Global Ventures and OCA Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCA Acquisition Corp and LAMF Global 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 LAMF Global Ventures are associated (or correlated) with OCA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCA Acquisition Corp has no effect on the direction of LAMF Global i.e., LAMF Global and OCA Acquisition go up and down completely randomly.
Pair Corralation between LAMF Global and OCA Acquisition
Given the investment horizon of 90 days LAMF Global is expected to generate 1.04 times less return on investment than OCA Acquisition. In addition to that, LAMF Global is 1.65 times more volatile than OCA Acquisition Corp. It trades about 0.03 of its total potential returns per unit of risk. OCA Acquisition Corp is currently generating about 0.06 per unit of volatility. If you would invest 1,019 in OCA Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 91.00 from holding OCA Acquisition Corp or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 37.93% |
| Values | Daily Returns |
LAMF Global Ventures vs. OCA Acquisition Corp
Performance |
| Timeline |
| LAMF Global Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OCA Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LAMF Global and OCA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LAMF Global and OCA Acquisition
The main advantage of trading using opposite LAMF Global and OCA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAMF Global position performs unexpectedly, OCA 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 OCA Acquisition will offset losses from the drop in OCA Acquisition's long position.The idea behind LAMF Global Ventures and OCA 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.| OCA Acquisition vs. DP Cap Acquisition | OCA Acquisition vs. A SPAC II | OCA Acquisition vs. Athena Technology Acquisition | OCA Acquisition vs. Welsbach Technology Metals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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