Correlation Between Viveon Health and Finnovate Acquisition

Can any of the company-specific risk be diversified away by investing in both Viveon Health and Finnovate 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 Viveon Health and Finnovate Acquisition 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 Finnovate Acquisition Corp, you can compare the effects of market volatilities on Viveon Health and Finnovate 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 Viveon Health with a short position of Finnovate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viveon Health and Finnovate Acquisition.

Diversification Opportunities for Viveon Health and Finnovate Acquisition

0.0

Correlation Coefficient

Viveon Health  Finnovate Acquisition

Pay attention - limited upside

The 3 months correlation between Viveon and Finnovate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Viveon Health Acquisition and Finnovate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnovate 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 Finnovate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnovate Acquisition has no effect on the direction of Viveon Health i.e., Viveon Health and Finnovate Acquisition go up and down completely randomly.

Pair Corralation between Viveon Health and Finnovate Acquisition

If you would invest (100.00) in Viveon Health Acquisition on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Viveon Health Acquisition or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Viveon Health Acquisition  vs.  Finnovate Acquisition Corp

Viveon Health Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Viveon Health Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Viveon Health is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Finnovate Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Finnovate Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Finnovate Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Viveon Health and Finnovate Acquisition

The main advantage of trading using opposite Viveon Health and Finnovate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viveon Health position performs unexpectedly, Finnovate 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 Finnovate Acquisition will offset losses from the drop in Finnovate Acquisition's long position.

The idea behind Viveon Health Acquisition and Finnovate Acquisition Corp 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.