Correlation Between YHN Acquisition and A SPAC
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and A SPAC 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 A SPAC 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 A SPAC II, you can compare the effects of market volatilities on YHN Acquisition and A SPAC 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 A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and A SPAC.
Diversification Opportunities for YHN Acquisition and A SPAC
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between YHN and ASUUF is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and A SPAC II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC II 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 A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC II has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and A SPAC go up and down completely randomly.
Pair Corralation between YHN Acquisition and A SPAC
Assuming the 90 days horizon YHN Acquisition I is expected to generate 0.85 times more return on investment than A SPAC. However, YHN Acquisition I is 1.18 times less risky than A SPAC. It trades about 0.03 of its potential returns per unit of risk. A SPAC II is currently generating about -0.2 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 Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
YHN Acquisition I vs. A SPAC II
Performance |
| Timeline |
| YHN Acquisition I |
| A SPAC II |
YHN Acquisition and A SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and A SPAC
The main advantage of trading using opposite YHN Acquisition and A SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, A SPAC 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 A SPAC will offset losses from the drop in A SPAC'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 |
| A SPAC vs. Voyager Acquisition Corp | A SPAC vs. YHN Acquisition I | A SPAC vs. CO2 Energy Transition | A SPAC 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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