Correlation Between YHN Acquisition and Flag Ship
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Flag Ship 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 Flag Ship 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 Flag Ship Acquisition, you can compare the effects of market volatilities on YHN Acquisition and Flag Ship 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 Flag Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Flag Ship.
Diversification Opportunities for YHN Acquisition and Flag Ship
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YHN and Flag is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Flag Ship Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flag Ship 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 Flag Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flag Ship Acquisition has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Flag Ship go up and down completely randomly.
Pair Corralation between YHN Acquisition and Flag Ship
Assuming the 90 days horizon YHN Acquisition is expected to generate 1.67 times less return on investment than Flag Ship. In addition to that, YHN Acquisition is 1.31 times more volatile than Flag Ship Acquisition. It trades about 0.04 of its total potential returns per unit of risk. Flag Ship Acquisition is currently generating about 0.08 per unit of volatility. If you would invest 1,000.00 in Flag Ship Acquisition on September 19, 2024 and sell it today you would earn a total of 43.00 from holding Flag Ship Acquisition or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 53.91% |
| Values | Daily Returns |
YHN Acquisition I vs. Flag Ship Acquisition
Performance |
| Timeline |
| YHN Acquisition I |
| Flag Ship Acquisition |
YHN Acquisition and Flag Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Flag Ship
The main advantage of trading using opposite YHN Acquisition and Flag Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Flag Ship 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 Flag Ship will offset losses from the drop in Flag Ship'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 |
| Flag Ship vs. Voyager Acquisition Corp | Flag Ship vs. YHN Acquisition I | Flag Ship vs. YHN Acquisition I | Flag Ship 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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