Correlation Between Vine Hill and YHN Acquisition
Can any of the company-specific risk be diversified away by investing in both Vine Hill 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 Vine Hill and YHN Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vine Hill Capital and YHN Acquisition I, you can compare the effects of market volatilities on Vine Hill 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 Vine Hill with a short position of YHN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vine Hill and YHN Acquisition.
Diversification Opportunities for Vine Hill and YHN Acquisition
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vine and YHN is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Vine Hill Capital 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 Vine Hill 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 Vine Hill Capital 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 Vine Hill i.e., Vine Hill and YHN Acquisition go up and down completely randomly.
Pair Corralation between Vine Hill and YHN Acquisition
Given the investment horizon of 90 days Vine Hill is expected to generate 7786.76 times less return on investment than YHN Acquisition. But when comparing it to its historical volatility, Vine Hill Capital is 4578.7 times less risky than YHN Acquisition. It trades about 0.2 of its potential returns per unit of risk. YHN Acquisition I is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 0.00 in YHN Acquisition I on August 28, 2024 and sell it today you would earn a total of 12.00 from holding YHN Acquisition I or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.86% |
| Values | Daily Returns |
Vine Hill Capital vs. YHN Acquisition I
Performance |
| Timeline |
| Vine Hill Capital |
| YHN Acquisition I |
Vine Hill and YHN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vine Hill and YHN Acquisition
The main advantage of trading using opposite Vine Hill and YHN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vine Hill 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.| Vine Hill vs. dMY Squared Technology | Vine Hill vs. DP Cap Acquisition | Vine Hill vs. PowerUp Acquisition Corp | Vine Hill vs. PowerUp Acquisition Corp |
| YHN Acquisition vs. dMY Squared Technology | YHN Acquisition vs. Vine Hill Capital | YHN Acquisition vs. DP Cap Acquisition | YHN Acquisition vs. PowerUp 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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