Correlation Between YHN Acquisition and Nova Vision
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Nova Vision 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 Nova Vision 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 Nova Vision Acquisition, you can compare the effects of market volatilities on YHN Acquisition and Nova Vision 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 Nova Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Nova Vision.
Diversification Opportunities for YHN Acquisition and Nova Vision
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between YHN and Nova is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Nova Vision Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Vision 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 Nova Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Vision Acquisition has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Nova Vision go up and down completely randomly.
Pair Corralation between YHN Acquisition and Nova Vision
Assuming the 90 days horizon YHN Acquisition I is expected to generate 35.3 times more return on investment than Nova Vision. However, YHN Acquisition is 35.3 times more volatile than Nova Vision Acquisition. It trades about 0.33 of its potential returns per unit of risk. Nova Vision Acquisition is currently generating about 0.05 per unit of risk. If you would invest 0.00 in YHN Acquisition I on August 29, 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 Against |
| Strength | Insignificant |
| Accuracy | 1.83% |
| Values | Daily Returns |
YHN Acquisition I vs. Nova Vision Acquisition
Performance |
| Timeline |
| YHN Acquisition I |
| Nova Vision Acquisition |
YHN Acquisition and Nova Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Nova Vision
The main advantage of trading using opposite YHN Acquisition and Nova Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Nova Vision 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 Nova Vision will offset losses from the drop in Nova Vision's long position.| YHN Acquisition vs. Distoken Acquisition | YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. dMY Squared Technology | YHN Acquisition vs. YHN Acquisition I |
| Nova Vision vs. Playtech plc | Nova Vision vs. National CineMedia | Nova Vision vs. Sonos Inc | Nova Vision vs. Nextplat 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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