Correlation Between YHN Acquisition and Black Spade
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Black Spade 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 Black Spade 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 Black Spade Acquisition, you can compare the effects of market volatilities on YHN Acquisition and Black Spade 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 Black Spade. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Black Spade.
Diversification Opportunities for YHN Acquisition and Black Spade
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YHN and Black is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Black Spade Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Spade 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 Black Spade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Spade Acquisition has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Black Spade go up and down completely randomly.
Pair Corralation between YHN Acquisition and Black Spade
Assuming the 90 days horizon YHN Acquisition I is expected to generate 2.51 times more return on investment than Black Spade. However, YHN Acquisition is 2.51 times more volatile than Black Spade Acquisition. It trades about 0.04 of its potential returns per unit of risk. Black Spade Acquisition is currently generating about 0.07 per unit of risk. If you would invest 1,000.00 in YHN Acquisition I on October 14, 2024 and sell it today you would earn a total of 15.00 from holding YHN Acquisition I or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.85% |
| Values | Daily Returns |
YHN Acquisition I vs. Black Spade Acquisition
Performance |
| Timeline |
| YHN Acquisition I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Black Spade Acquisition |
YHN Acquisition and Black Spade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Black Spade
The main advantage of trading using opposite YHN Acquisition and Black Spade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Black Spade 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 Black Spade will offset losses from the drop in Black Spade's long position.| YHN Acquisition vs. Paysafe | YHN Acquisition vs. Games Workshop Group | YHN Acquisition vs. NetEase | YHN Acquisition vs. Penn National Gaming |
| Black Spade vs. Distoken Acquisition | Black Spade vs. Voyager Acquisition Corp | Black Spade vs. dMY Squared Technology | Black Spade vs. CO2 Energy Transition |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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