Correlation Between FTAC Emerald and YHN Acquisition
Can any of the company-specific risk be diversified away by investing in both FTAC Emerald 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 FTAC Emerald and YHN Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAC Emerald Acquisition and YHN Acquisition I, you can compare the effects of market volatilities on FTAC Emerald 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 FTAC Emerald with a short position of YHN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAC Emerald and YHN Acquisition.
Diversification Opportunities for FTAC Emerald and YHN Acquisition
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FTAC and YHN is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding FTAC Emerald Acquisition 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 FTAC Emerald 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 FTAC Emerald Acquisition 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 FTAC Emerald i.e., FTAC Emerald and YHN Acquisition go up and down completely randomly.
Pair Corralation between FTAC Emerald and YHN Acquisition
Assuming the 90 days horizon FTAC Emerald Acquisition is expected to generate 8.66 times more return on investment than YHN Acquisition. However, FTAC Emerald is 8.66 times more volatile than YHN Acquisition I. It trades about 0.03 of its potential returns per unit of risk. YHN Acquisition I is currently generating about 0.15 per unit of risk. If you would invest 998.00 in FTAC Emerald Acquisition on September 4, 2024 and sell it today you would earn a total of 202.00 from holding FTAC Emerald Acquisition or generate 20.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 11.34% |
| Values | Daily Returns |
FTAC Emerald Acquisition vs. YHN Acquisition I
Performance |
| Timeline |
| FTAC Emerald Acquisition |
| YHN Acquisition I |
FTAC Emerald and YHN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAC Emerald and YHN Acquisition
The main advantage of trading using opposite FTAC Emerald and YHN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAC Emerald 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.| FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. YHN Acquisition I | FTAC Emerald vs. CO2 Energy Transition | FTAC Emerald vs. Vine Hill Capital |
| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. CO2 Energy Transition | YHN Acquisition vs. Vine Hill Capital | YHN Acquisition vs. DUET 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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