Correlation Between YHN Acquisition and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and IX 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 IX 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 IX Acquisition Corp, you can compare the effects of market volatilities on YHN Acquisition and IX 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 IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and IX Acquisition.
Diversification Opportunities for YHN Acquisition and IX Acquisition
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YHN and IXAQU is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX 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 IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and IX Acquisition go up and down completely randomly.
Pair Corralation between YHN Acquisition and IX Acquisition
Assuming the 90 days horizon YHN Acquisition is expected to generate 6.12 times less return on investment than IX Acquisition. But when comparing it to its historical volatility, YHN Acquisition I is 9.11 times less risky than IX Acquisition. It trades about 0.15 of its potential returns per unit of risk. IX Acquisition Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,004 in IX Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 137.00 from holding IX Acquisition Corp or generate 13.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 57.73% |
| Values | Daily Returns |
YHN Acquisition I vs. IX Acquisition Corp
Performance |
| Timeline |
| YHN Acquisition I |
| IX Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
YHN Acquisition and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and IX Acquisition
The main advantage of trading using opposite YHN Acquisition and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, IX 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 IX Acquisition will offset losses from the drop in IX Acquisition's long position.| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. CO2 Energy Transition | YHN Acquisition vs. Vine Hill Capital | YHN Acquisition vs. DUET Acquisition Corp |
| IX Acquisition vs. Paysafe | IX Acquisition vs. Cadence Design Systems | IX Acquisition vs. Rumble Inc | IX Acquisition vs. Entegris |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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