Correlation Between LIV Capital and DHC Acquisition
Can any of the company-specific risk be diversified away by investing in both LIV Capital and DHC 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 LIV Capital and DHC Acquisition 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 DHC Acquisition Corp, you can compare the effects of market volatilities on LIV Capital and DHC 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 LIV Capital with a short position of DHC Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIV Capital and DHC Acquisition.
Diversification Opportunities for LIV Capital and DHC Acquisition
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LIV and DHC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding LIV Capital Acquisition and DHC Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHC Acquisition Corp 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 DHC Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHC Acquisition Corp has no effect on the direction of LIV Capital i.e., LIV Capital and DHC Acquisition go up and down completely randomly.
Pair Corralation between LIV Capital and DHC Acquisition
If you would invest 1,036 in DHC Acquisition Corp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding DHC Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIV Capital Acquisition vs. DHC Acquisition Corp
Performance |
| Timeline |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| DHC Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LIV Capital and DHC Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIV Capital and DHC Acquisition
The main advantage of trading using opposite LIV Capital and DHC Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIV Capital position performs unexpectedly, DHC 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 DHC Acquisition will offset losses from the drop in DHC Acquisition'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 |
| DHC Acquisition vs. Portage Fintech Acquisition | DHC Acquisition vs. Swiftmerge Acquisition Corp | DHC Acquisition vs. Four Leaf Acquisition | DHC Acquisition 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |