Correlation Between Newcourt Acquisition and LIV Capital
Can any of the company-specific risk be diversified away by investing in both Newcourt Acquisition and LIV Capital 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 Newcourt Acquisition and LIV Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcourt Acquisition Corp and LIV Capital Acquisition, you can compare the effects of market volatilities on Newcourt Acquisition and LIV Capital 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 Newcourt Acquisition with a short position of LIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcourt Acquisition and LIV Capital.
Diversification Opportunities for Newcourt Acquisition and LIV Capital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Newcourt and LIV is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Newcourt Acquisition Corp and LIV Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIV Capital Acquisition and Newcourt Acquisition 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 Newcourt Acquisition Corp are associated (or correlated) with LIV Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIV Capital Acquisition has no effect on the direction of Newcourt Acquisition i.e., Newcourt Acquisition and LIV Capital go up and down completely randomly.
Pair Corralation between Newcourt Acquisition and LIV Capital
If you would invest 1,062 in LIV Capital Acquisition on August 29, 2024 and sell it today you would earn a total of 0.00 from holding LIV Capital Acquisition 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 |
Newcourt Acquisition Corp vs. LIV Capital Acquisition
Performance |
| Timeline |
| Newcourt Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Newcourt Acquisition and LIV Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcourt Acquisition and LIV Capital
The main advantage of trading using opposite Newcourt Acquisition and LIV Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcourt Acquisition position performs unexpectedly, LIV Capital 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 LIV Capital will offset losses from the drop in LIV Capital's long position.The idea behind Newcourt Acquisition Corp and LIV Capital Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |