Correlation Between YHN Acquisition and Ares Acquisition
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Ares 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 Ares 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 Ares Acquisition, you can compare the effects of market volatilities on YHN Acquisition and Ares 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 Ares Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Ares Acquisition.
Diversification Opportunities for YHN Acquisition and Ares Acquisition
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between YHN and Ares is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Ares Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ares 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 Ares Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ares Acquisition has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Ares Acquisition go up and down completely randomly.
Pair Corralation between YHN Acquisition and Ares Acquisition
Assuming the 90 days horizon YHN Acquisition I is expected to generate 1.51 times more return on investment than Ares Acquisition. However, YHN Acquisition is 1.51 times more volatile than Ares Acquisition. It trades about 0.03 of its potential returns per unit of risk. Ares Acquisition is currently generating about 0.02 per unit of risk. If you would invest 1,000.00 in YHN Acquisition I on September 14, 2024 and sell it today you would earn a total of 12.00 from holding YHN Acquisition I or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 24.63% |
| Values | Daily Returns |
YHN Acquisition I vs. Ares Acquisition
Performance |
| Timeline |
| YHN Acquisition I |
| Ares Acquisition |
YHN Acquisition and Ares Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Ares Acquisition
The main advantage of trading using opposite YHN Acquisition and Ares Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Ares 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 Ares Acquisition will offset losses from the drop in Ares Acquisition's long position.| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. CO2 Energy Transition | YHN Acquisition vs. Vine Hill Capital | YHN Acquisition vs. DT Cloud Star |
| Ares Acquisition vs. Voyager Acquisition Corp | Ares Acquisition vs. YHN Acquisition I | Ares Acquisition vs. CO2 Energy Transition | Ares Acquisition vs. Vine Hill Capital |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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