Correlation Between YHN Acquisition and Dow Jones
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on YHN Acquisition and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Dow Jones.
Diversification Opportunities for YHN Acquisition and Dow Jones
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between YHN and Dow is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Dow Jones go up and down completely randomly.
Pair Corralation between YHN Acquisition and Dow Jones
Assuming the 90 days horizon YHN Acquisition I is expected to generate 430.88 times more return on investment than Dow Jones. However, YHN Acquisition is 430.88 times more volatile than Dow Jones Industrial. It trades about 0.33 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.17 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 Against |
| Strength | Insignificant |
| Accuracy | 7.14% |
| Values | Daily Returns |
YHN Acquisition I vs. Dow Jones Industrial
Performance |
| Timeline |
YHN Acquisition and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
YHN Acquisition I
Pair trading matchups for YHN Acquisition
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with YHN Acquisition and Dow Jones
The main advantage of trading using opposite YHN Acquisition and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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