Correlation Between LIV Capital and Churchill Capital
Can any of the company-specific risk be diversified away by investing in both LIV Capital and Churchill Capital 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 Churchill Capital 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 Churchill Capital V, you can compare the effects of market volatilities on LIV Capital and Churchill Capital 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 Churchill Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIV Capital and Churchill Capital.
Diversification Opportunities for LIV Capital and Churchill Capital
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LIV and Churchill is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding LIV Capital Acquisition and Churchill Capital V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Churchill Capital 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 Churchill Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Churchill Capital has no effect on the direction of LIV Capital i.e., LIV Capital and Churchill Capital go up and down completely randomly.
Pair Corralation between LIV Capital and Churchill Capital
Given the investment horizon of 90 days LIV Capital is expected to generate 1.18 times less return on investment than Churchill Capital. But when comparing it to its historical volatility, LIV Capital Acquisition is 3.26 times less risky than Churchill Capital. It trades about 0.33 of its potential returns per unit of risk. Churchill Capital V is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,014 in Churchill Capital V on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Churchill Capital V or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.67% |
| Values | Daily Returns |
LIV Capital Acquisition vs. Churchill Capital V
Performance |
| Timeline |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Churchill Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LIV Capital and Churchill Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIV Capital and Churchill Capital
The main advantage of trading using opposite LIV Capital and Churchill Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIV Capital position performs unexpectedly, Churchill Capital 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 Churchill Capital will offset losses from the drop in Churchill Capital'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 |
| Churchill Capital vs. In Veritas Medical | Churchill Capital vs. TMT Acquisition Corp | Churchill Capital vs. IX 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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