Correlation Between LIV Capital and AxonPrime Infrastructure
Can any of the company-specific risk be diversified away by investing in both LIV Capital and AxonPrime Infrastructure 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 LIV Capital and AxonPrime Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIV Capital Acquisition and AxonPrime Infrastructure Acquisition, you can compare the effects of market volatilities on LIV Capital and AxonPrime Infrastructure 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 LIV Capital with a short position of AxonPrime Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIV Capital and AxonPrime Infrastructure.
Diversification Opportunities for LIV Capital and AxonPrime Infrastructure
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LIV and AxonPrime is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding LIV Capital Acquisition and AxonPrime Infrastructure Acqui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AxonPrime Infrastructure and LIV Capital 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 LIV Capital Acquisition are associated (or correlated) with AxonPrime Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AxonPrime Infrastructure has no effect on the direction of LIV Capital i.e., LIV Capital and AxonPrime Infrastructure go up and down completely randomly.
Pair Corralation between LIV Capital and AxonPrime Infrastructure
If you would invest 1,028 in AxonPrime Infrastructure Acquisition on August 29, 2024 and sell it today you would earn a total of 0.00 from holding AxonPrime Infrastructure Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIV Capital Acquisition vs. AxonPrime Infrastructure Acqui
Performance |
| Timeline |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AxonPrime Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LIV Capital and AxonPrime Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIV Capital and AxonPrime Infrastructure
The main advantage of trading using opposite LIV Capital and AxonPrime Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIV Capital position performs unexpectedly, AxonPrime Infrastructure 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 AxonPrime Infrastructure will offset losses from the drop in AxonPrime Infrastructure's long position.| LIV Capital vs. IX Acquisition Corp | LIV Capital vs. LatAmGrowth SPAC | LIV Capital vs. Portage Fintech Acquisition | LIV Capital vs. Swiftmerge Acquisition Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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