Correlation Between LIV Capital and Newcourt Acquisition
Can any of the company-specific risk be diversified away by investing in both LIV Capital and Newcourt 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 Newcourt 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 Newcourt Acquisition Corp, you can compare the effects of market volatilities on LIV Capital and Newcourt 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 Newcourt Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIV Capital and Newcourt Acquisition.
Diversification Opportunities for LIV Capital and Newcourt Acquisition
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between LIV and Newcourt is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding LIV Capital Acquisition and Newcourt Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newcourt 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 Newcourt Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newcourt Acquisition Corp has no effect on the direction of LIV Capital i.e., LIV Capital and Newcourt Acquisition go up and down completely randomly.
Pair Corralation between LIV Capital and Newcourt Acquisition
If you would invest 1,100 in Newcourt Acquisition Corp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Newcourt Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIV Capital Acquisition vs. Newcourt Acquisition Corp
Performance |
| Timeline |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Newcourt Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LIV Capital and Newcourt Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIV Capital and Newcourt Acquisition
The main advantage of trading using opposite LIV Capital and Newcourt Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIV Capital position performs unexpectedly, Newcourt 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 Newcourt Acquisition will offset losses from the drop in Newcourt 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 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |