Correlation Between Viveon Health and LIV Capital
Can any of the company-specific risk be diversified away by investing in both Viveon Health 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 Viveon Health and LIV Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viveon Health Acquisition and LIV Capital Acquisition, you can compare the effects of market volatilities on Viveon Health 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 Viveon Health with a short position of LIV Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viveon Health and LIV Capital.
Diversification Opportunities for Viveon Health and LIV Capital
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Viveon and LIV is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Viveon Health Acquisition 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 Viveon Health 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 Viveon Health Acquisition 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 Viveon Health i.e., Viveon Health and LIV Capital go up and down completely randomly.
Pair Corralation between Viveon Health and LIV Capital
Given the investment horizon of 90 days Viveon Health Acquisition is expected to generate 14.24 times more return on investment than LIV Capital. However, Viveon Health is 14.24 times more volatile than LIV Capital Acquisition. It trades about 0.02 of its potential returns per unit of risk. LIV Capital Acquisition is currently generating about 0.19 per unit of risk. If you would invest 1,060 in Viveon Health Acquisition on August 29, 2024 and sell it today you would earn a total of 45.00 from holding Viveon Health Acquisition or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.36% |
| Values | Daily Returns |
Viveon Health Acquisition vs. LIV Capital Acquisition
Performance |
| Timeline |
| Viveon Health Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LIV Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Viveon Health and LIV Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viveon Health and LIV Capital
The main advantage of trading using opposite Viveon Health and LIV Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viveon Health 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.| Viveon Health vs. Finnovate Acquisition Corp | Viveon Health vs. IX Acquisition Corp | Viveon Health vs. LatAmGrowth SPAC |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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