Correlation Between YHN Acquisition and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and BurTech 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 YHN Acquisition and BurTech Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YHN Acquisition I and BurTech Acquisition Corp, you can compare the effects of market volatilities on YHN Acquisition and BurTech 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 YHN Acquisition with a short position of BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and BurTech Acquisition.
Diversification Opportunities for YHN Acquisition and BurTech Acquisition
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between YHN and BurTech is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and BurTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurTech Acquisition Corp and YHN 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 YHN Acquisition I are associated (or correlated) with BurTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurTech Acquisition Corp has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and BurTech Acquisition go up and down completely randomly.
Pair Corralation between YHN Acquisition and BurTech Acquisition
Assuming the 90 days horizon YHN Acquisition I is expected to generate 26.97 times more return on investment than BurTech Acquisition. However, YHN Acquisition is 26.97 times more volatile than BurTech Acquisition Corp. It trades about 0.33 of its potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.11 per unit of risk. 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 Together |
| Strength | Very Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
YHN Acquisition I vs. BurTech Acquisition Corp
Performance |
| Timeline |
| YHN Acquisition I |
| BurTech Acquisition Corp |
YHN Acquisition and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and BurTech Acquisition
The main advantage of trading using opposite YHN Acquisition and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, BurTech 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 BurTech Acquisition will offset losses from the drop in BurTech Acquisition's long position.| YHN Acquisition vs. dMY Squared Technology | YHN Acquisition vs. Vine Hill Capital | YHN Acquisition vs. DP Cap Acquisition | YHN Acquisition vs. PowerUp Acquisition Corp |
| BurTech Acquisition vs. PowerUp Acquisition Corp | BurTech Acquisition vs. Aurora Innovation | BurTech Acquisition vs. HUMANA INC | BurTech Acquisition vs. Aquagold International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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