Correlation Between YHN Acquisition and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and FTAC Emerald 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 FTAC Emerald 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 FTAC Emerald Acquisition, you can compare the effects of market volatilities on YHN Acquisition and FTAC Emerald 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 FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and FTAC Emerald.
Diversification Opportunities for YHN Acquisition and FTAC Emerald
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between YHN and FTAC is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition 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 FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and FTAC Emerald go up and down completely randomly.
Pair Corralation between YHN Acquisition and FTAC Emerald
Assuming the 90 days horizon YHN Acquisition I is expected to generate 162.11 times more return on investment than FTAC Emerald. However, YHN Acquisition is 162.11 times more volatile than FTAC Emerald Acquisition. It trades about 0.31 of its potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.03 per unit of risk. If you would invest 0.00 in YHN Acquisition I on September 1, 2024 and sell it today you would earn a total of 11.00 from holding YHN Acquisition I or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 7.94% |
| Values | Daily Returns |
YHN Acquisition I vs. FTAC Emerald Acquisition
Performance |
| Timeline |
| YHN Acquisition I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| FTAC Emerald Acquisition |
YHN Acquisition and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and FTAC Emerald
The main advantage of trading using opposite YHN Acquisition and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald's long position.| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. dMY Squared Technology | YHN Acquisition vs. YHN Acquisition I | YHN Acquisition vs. PowerUp Acquisition Corp |
| FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. CO2 Energy Transition | FTAC Emerald vs. Vine Hill Capital | FTAC Emerald 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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