Correlation Between OCA Acquisition and LIV Capital
Can any of the company-specific risk be diversified away by investing in both OCA 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 OCA 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 OCA Acquisition Corp and LIV Capital Acquisition, you can compare the effects of market volatilities on OCA 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 OCA Acquisition with a short position of LIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of OCA Acquisition and LIV Capital.
Diversification Opportunities for OCA Acquisition and LIV Capital
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OCA and LIV is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding OCA 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 OCA 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 OCA 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 OCA Acquisition i.e., OCA Acquisition and LIV Capital go up and down completely randomly.
Pair Corralation between OCA Acquisition and LIV Capital
Given the investment horizon of 90 days OCA Acquisition is expected to generate 1.17 times less return on investment than LIV Capital. In addition to that, OCA Acquisition is 2.88 times more volatile than LIV Capital Acquisition. It trades about 0.06 of its total potential returns per unit of risk. LIV Capital Acquisition is currently generating about 0.19 per unit of volatility. 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 |
OCA Acquisition Corp vs. LIV Capital Acquisition
Performance |
| Timeline |
| OCA 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
OCA Acquisition and LIV Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OCA Acquisition and LIV Capital
The main advantage of trading using opposite OCA Acquisition and LIV Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OCA 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.| OCA Acquisition vs. DP Cap Acquisition | OCA Acquisition vs. A SPAC II | OCA Acquisition vs. Athena Technology Acquisition | OCA Acquisition vs. Welsbach Technology Metals |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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