Correlation Between YHN Acquisition and DMY Squared
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and DMY Squared 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 DMY Squared 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 dMY Squared Technology, you can compare the effects of market volatilities on YHN Acquisition and DMY Squared 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 DMY Squared. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and DMY Squared.
Diversification Opportunities for YHN Acquisition and DMY Squared
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between YHN and DMY is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and dMY Squared Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on dMY Squared Technology 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 DMY Squared. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of dMY Squared Technology has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and DMY Squared go up and down completely randomly.
Pair Corralation between YHN Acquisition and DMY Squared
Assuming the 90 days horizon YHN Acquisition I is expected to generate 0.39 times more return on investment than DMY Squared. However, YHN Acquisition I is 2.55 times less risky than DMY Squared. It trades about 0.26 of its potential returns per unit of risk. dMY Squared Technology is currently generating about 0.04 per unit of risk. If you would invest 1,000.00 in YHN Acquisition I on August 24, 2024 and sell it today you would earn a total of 19.00 from holding YHN Acquisition I or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 10.53% |
| Values | Daily Returns |
YHN Acquisition I vs. dMY Squared Technology
Performance |
| Timeline |
| YHN Acquisition I |
| dMY Squared Technology |
YHN Acquisition and DMY Squared Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and DMY Squared
The main advantage of trading using opposite YHN Acquisition and DMY Squared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, DMY Squared 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 DMY Squared will offset losses from the drop in DMY Squared's long position.| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. dMY Squared Technology | YHN Acquisition vs. YHN Acquisition I | YHN Acquisition vs. Vine Hill Capital |
| DMY Squared vs. Distoken Acquisition | DMY Squared vs. Voyager Acquisition Corp | DMY Squared vs. YHN Acquisition I | DMY Squared vs. YHN Acquisition I |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |