Correlation Between LIV Capital and OCA Acquisition
Can any of the company-specific risk be diversified away by investing in both LIV Capital and OCA 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 OCA 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 OCA Acquisition Corp, you can compare the effects of market volatilities on LIV Capital and OCA 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 OCA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIV Capital and OCA Acquisition.
Diversification Opportunities for LIV Capital and OCA Acquisition
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LIV and OCA is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding LIV Capital Acquisition and OCA Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCA 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 OCA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCA Acquisition Corp has no effect on the direction of LIV Capital i.e., LIV Capital and OCA Acquisition go up and down completely randomly.
Pair Corralation between LIV Capital and OCA Acquisition
Given the investment horizon of 90 days LIV Capital Acquisition is expected to generate 0.35 times more return on investment than OCA Acquisition. However, LIV Capital Acquisition is 2.88 times less risky than OCA Acquisition. It trades about 0.19 of its potential returns per unit of risk. OCA Acquisition Corp is currently generating about 0.06 per unit of risk. If you would invest 1,021 in LIV Capital Acquisition on August 29, 2024 and sell it today you would earn a total of 41.00 from holding LIV Capital Acquisition or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 38.08% |
| Values | Daily Returns |
LIV Capital Acquisition vs. OCA Acquisition Corp
Performance |
| Timeline |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OCA Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LIV Capital and OCA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIV Capital and OCA Acquisition
The main advantage of trading using opposite LIV Capital and OCA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIV Capital position performs unexpectedly, OCA 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 OCA Acquisition will offset losses from the drop in OCA 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 |
| OCA Acquisition vs. DP Cap Acquisition | OCA Acquisition vs. A SPAC II | OCA Acquisition vs. Athena Technology Acquisition | OCA Acquisition vs. Welsbach Technology Metals |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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