Correlation Between Bank Central and LIV Capital
Can any of the company-specific risk be diversified away by investing in both Bank Central 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 Bank Central and LIV Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and LIV Capital Acquisition, you can compare the effects of market volatilities on Bank Central 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 Bank Central with a short position of LIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and LIV Capital.
Diversification Opportunities for Bank Central and LIV Capital
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and LIV is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia 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 Bank Central 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 Bank Central Asia 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 Bank Central i.e., Bank Central and LIV Capital go up and down completely randomly.
Pair Corralation between Bank Central and LIV Capital
If you would invest 1,519 in Bank Central Asia on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Bank Central Asia or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Bank Central Asia vs. LIV Capital Acquisition
Performance |
| Timeline |
| Bank Central Asia |
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and LIV Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and LIV Capital
The main advantage of trading using opposite Bank Central and LIV Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central 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.| Bank Central vs. Piraeus Bank SA | Bank Central vs. Turkiye Garanti Bankasi | Bank Central vs. Delhi Bank Corp | Bank Central vs. Uwharrie Capital Corp |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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