Correlation Between YHN Acquisition and Chain Bridge
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Chain Bridge 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 Chain Bridge 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 Chain Bridge I, you can compare the effects of market volatilities on YHN Acquisition and Chain Bridge 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 Chain Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Chain Bridge.
Diversification Opportunities for YHN Acquisition and Chain Bridge
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YHN and Chain is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Chain Bridge I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chain Bridge I 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 Chain Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chain Bridge I has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Chain Bridge go up and down completely randomly.
Pair Corralation between YHN Acquisition and Chain Bridge
Assuming the 90 days horizon YHN Acquisition I is expected to generate 0.33 times more return on investment than Chain Bridge. However, YHN Acquisition I is 3.08 times less risky than Chain Bridge. It trades about 0.12 of its potential returns per unit of risk. Chain Bridge I is currently generating about -0.24 per unit of risk. If you would invest 1,007 in YHN Acquisition I on August 30, 2024 and sell it today you would earn a total of 6.02 from holding YHN Acquisition I or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
YHN Acquisition I vs. Chain Bridge I
Performance |
| Timeline |
| YHN Acquisition I |
| Chain Bridge I |
YHN Acquisition and Chain Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Chain Bridge
The main advantage of trading using opposite YHN Acquisition and Chain Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Chain Bridge 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 Chain Bridge will offset losses from the drop in Chain Bridge's long position.| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. YHN Acquisition I | YHN Acquisition vs. CO2 Energy Transition | YHN 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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