Correlation Between Eureka Acquisition and YHN Acquisition
Can any of the company-specific risk be diversified away by investing in both Eureka Acquisition and YHN 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 Eureka Acquisition and YHN Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eureka Acquisition Corp and YHN Acquisition I, you can compare the effects of market volatilities on Eureka Acquisition and YHN 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 Eureka Acquisition with a short position of YHN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eureka Acquisition and YHN Acquisition.
Diversification Opportunities for Eureka Acquisition and YHN Acquisition
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eureka and YHN is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eureka Acquisition Corp and YHN Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YHN Acquisition I and Eureka 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 Eureka Acquisition Corp are associated (or correlated) with YHN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YHN Acquisition I has no effect on the direction of Eureka Acquisition i.e., Eureka Acquisition and YHN Acquisition go up and down completely randomly.
Pair Corralation between Eureka Acquisition and YHN Acquisition
Given the investment horizon of 90 days Eureka Acquisition is expected to generate 1.52 times less return on investment than YHN Acquisition. But when comparing it to its historical volatility, Eureka Acquisition Corp is 3.62 times less risky than YHN Acquisition. It trades about 0.27 of its potential returns per unit of risk. YHN Acquisition I is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,007 in YHN Acquisition I on August 30, 2024 and sell it today you would earn a total of 6.02 from holding YHN Acquisition I or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eureka Acquisition Corp vs. YHN Acquisition I
Performance |
| Timeline |
| Eureka Acquisition Corp |
| YHN Acquisition I |
Eureka Acquisition and YHN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eureka Acquisition and YHN Acquisition
The main advantage of trading using opposite Eureka Acquisition and YHN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eureka Acquisition position performs unexpectedly, YHN 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 YHN Acquisition will offset losses from the drop in YHN Acquisition's long position.| Eureka Acquisition vs. TFI International | Eureka Acquisition vs. Apogee Enterprises | Eureka Acquisition vs. Ryanair Holdings PLC | Eureka Acquisition vs. JD Sports Fashion |
| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. YHN Acquisition I | YHN Acquisition vs. CO2 Energy Transition | YHN Acquisition vs. Vine Hill Capital |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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