Correlation Between Viveon Health and Berenson Acquisition

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

Diversification Opportunities for Viveon Health and Berenson Acquisition

-0.1

Correlation Coefficient

Viveon Health  Berenson Acquisition

Good diversification

The 3 months correlation between Viveon and Berenson is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Viveon Health Acquisition and Berenson Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berenson Acquisition Corp 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 Berenson Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berenson Acquisition Corp has no effect on the direction of Viveon Health i.e., Viveon Health and Berenson Acquisition go up and down completely randomly.

Pair Corralation between Viveon Health and Berenson Acquisition

If you would invest  1,050  in Berenson Acquisition Corp on September 17, 2024 and sell it today you would earn a total of  14.00  from holding Berenson Acquisition Corp or generate 1.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	9.09%
Values	Daily Returns

Viveon Health Acquisition  vs.  Berenson Acquisition Corp

Viveon Health Acquisition

Risk-Adjusted Performance

0 of 100

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.

Berenson Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Strong

Over the last 90 days Berenson Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak fundamental indicators, Berenson Acquisition may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Viveon Health and Berenson Acquisition

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

The idea behind Viveon Health Acquisition and Berenson 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.