Correlation Between LIV Capital and LatAmGrowth SPAC
Can any of the company-specific risk be diversified away by investing in both LIV Capital and LatAmGrowth SPAC 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 LatAmGrowth SPAC 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 LatAmGrowth SPAC, you can compare the effects of market volatilities on LIV Capital and LatAmGrowth SPAC 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 LatAmGrowth SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIV Capital and LatAmGrowth SPAC.
Diversification Opportunities for LIV Capital and LatAmGrowth SPAC
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LIV and LatAmGrowth is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding LIV Capital Acquisition and LatAmGrowth SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LatAmGrowth SPAC 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 LatAmGrowth SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LatAmGrowth SPAC has no effect on the direction of LIV Capital i.e., LIV Capital and LatAmGrowth SPAC go up and down completely randomly.
Pair Corralation between LIV Capital and LatAmGrowth SPAC
If you would invest 1,166 in LatAmGrowth SPAC on August 29, 2024 and sell it today you would earn a total of 2.00 from holding LatAmGrowth SPAC or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
LIV Capital Acquisition vs. LatAmGrowth SPAC
Performance |
| Timeline |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LatAmGrowth SPAC |
LIV Capital and LatAmGrowth SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIV Capital and LatAmGrowth SPAC
The main advantage of trading using opposite LIV Capital and LatAmGrowth SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIV Capital position performs unexpectedly, LatAmGrowth SPAC 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 LatAmGrowth SPAC will offset losses from the drop in LatAmGrowth SPAC'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 |
| LatAmGrowth SPAC vs. Portage Fintech Acquisition | LatAmGrowth SPAC vs. Swiftmerge Acquisition Corp | LatAmGrowth SPAC vs. Four Leaf Acquisition | LatAmGrowth SPAC 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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