Correlation Between YHN Acquisition and Eureka Acquisition
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Eureka 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 Eureka 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 Eureka Acquisition Corp, you can compare the effects of market volatilities on YHN Acquisition and Eureka 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 Eureka Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Eureka Acquisition.
Diversification Opportunities for YHN Acquisition and Eureka Acquisition
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between YHN and Eureka is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Eureka Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eureka Acquisition Corp 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 Eureka Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eureka Acquisition Corp has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Eureka Acquisition go up and down completely randomly.
Pair Corralation between YHN Acquisition and Eureka Acquisition
Assuming the 90 days horizon YHN Acquisition I is expected to generate 0.8 times more return on investment than Eureka Acquisition. However, YHN Acquisition I is 1.24 times less risky than Eureka Acquisition. It trades about 0.11 of its potential returns per unit of risk. Eureka Acquisition Corp is currently generating about -0.16 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 6.00 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 | 100.0% |
| Values | Daily Returns |
YHN Acquisition I vs. Eureka Acquisition Corp
Performance |
| Timeline |
| YHN Acquisition I |
| Eureka Acquisition Corp |
YHN Acquisition and Eureka Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Eureka Acquisition
The main advantage of trading using opposite YHN Acquisition and Eureka Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Eureka 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 Eureka Acquisition will offset losses from the drop in Eureka Acquisition'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 |
| Eureka Acquisition vs. Voyager Acquisition Corp | Eureka Acquisition vs. YHN Acquisition I | Eureka Acquisition vs. YHN Acquisition I | Eureka Acquisition 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 Stocks Directory module to find actively traded stocks across global markets.
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