Correlation Between LIV Capital and Swiftmerge Acquisition
Can any of the company-specific risk be diversified away by investing in both LIV Capital and Swiftmerge 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 Swiftmerge 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 Swiftmerge Acquisition Corp, you can compare the effects of market volatilities on LIV Capital and Swiftmerge 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 Swiftmerge Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIV Capital and Swiftmerge Acquisition.
Diversification Opportunities for LIV Capital and Swiftmerge Acquisition
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LIV and Swiftmerge is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding LIV Capital Acquisition and Swiftmerge Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiftmerge Acquisition 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 Swiftmerge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiftmerge Acquisition has no effect on the direction of LIV Capital i.e., LIV Capital and Swiftmerge Acquisition go up and down completely randomly.
Pair Corralation between LIV Capital and Swiftmerge Acquisition
Given the investment horizon of 90 days LIV Capital is expected to generate 1.15 times less return on investment than Swiftmerge Acquisition. But when comparing it to its historical volatility, LIV Capital Acquisition is 10.41 times less risky than Swiftmerge Acquisition. It trades about 0.19 of its potential returns per unit of risk. Swiftmerge Acquisition Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,007 in Swiftmerge Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 103.00 from holding Swiftmerge Acquisition Corp or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.79% |
| Values | Daily Returns |
LIV Capital Acquisition vs. Swiftmerge Acquisition Corp
Performance |
| Timeline |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Swiftmerge Acquisition |
LIV Capital and Swiftmerge Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIV Capital and Swiftmerge Acquisition
The main advantage of trading using opposite LIV Capital and Swiftmerge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIV Capital position performs unexpectedly, Swiftmerge 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 Swiftmerge Acquisition will offset losses from the drop in Swiftmerge 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 |
| Swiftmerge Acquisition vs. Target Global Acquisition | Swiftmerge Acquisition vs. Pearl Holdings Acquisition |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |