Correlation Between YHN Acquisition and JV SPAC
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and JV SPAC 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 JV SPAC 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 JV SPAC Acquisition, you can compare the effects of market volatilities on YHN Acquisition and JV SPAC 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 JV SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and JV SPAC.
Diversification Opportunities for YHN Acquisition and JV SPAC
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between YHN and JVSA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and JV SPAC Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JV SPAC 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 JV SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JV SPAC Acquisition has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and JV SPAC go up and down completely randomly.
Pair Corralation between YHN Acquisition and JV SPAC
Assuming the 90 days horizon YHN Acquisition I is expected to generate 35.19 times more return on investment than JV SPAC. However, YHN Acquisition is 35.19 times more volatile than JV SPAC Acquisition. It trades about 0.01 of its potential returns per unit of risk. JV SPAC Acquisition is currently generating about 0.31 per unit of risk. If you would invest 1,011 in YHN Acquisition I on September 12, 2024 and sell it today you would earn a total of 1.00 from holding YHN Acquisition I or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YHN Acquisition I vs. JV SPAC Acquisition
Performance |
| Timeline |
| YHN Acquisition I |
| JV SPAC Acquisition |
YHN Acquisition and JV SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and JV SPAC
The main advantage of trading using opposite YHN Acquisition and JV SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, JV SPAC 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 JV SPAC will offset losses from the drop in JV SPAC's long position.| YHN Acquisition vs. Distoken Acquisition | YHN Acquisition vs. dMY Squared Technology | YHN Acquisition vs. CO2 Energy Transition | YHN Acquisition vs. Vine Hill Capital |
| JV SPAC vs. Nike Inc | JV SPAC vs. Ark Restaurants Corp | JV SPAC vs. First Watch Restaurant | JV SPAC vs. Canada Goose Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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