Correlation Between YHN Acquisition and HHG Capital
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and HHG Capital 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 HHG Capital 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 HHG Capital Corp, you can compare the effects of market volatilities on YHN Acquisition and HHG Capital 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 HHG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and HHG Capital.
Diversification Opportunities for YHN Acquisition and HHG Capital
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YHN and HHG is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and HHG Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HHG Capital 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 HHG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HHG Capital Corp has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and HHG Capital go up and down completely randomly.
Pair Corralation between YHN Acquisition and HHG Capital
If you would invest 1,008 in YHN Acquisition I on September 1, 2024 and sell it today you would earn a total of 5.00 from holding YHN Acquisition I or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
YHN Acquisition I vs. HHG Capital Corp
Performance |
| Timeline |
| YHN Acquisition I |
| HHG Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
YHN Acquisition and HHG Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and HHG Capital
The main advantage of trading using opposite YHN Acquisition and HHG Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, HHG Capital 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 HHG Capital will offset losses from the drop in HHG Capital's long position.| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. CO2 Energy Transition | YHN Acquisition vs. Vine Hill Capital | YHN Acquisition vs. DT Cloud Star |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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