Correlation Between YHN Acquisition and Melar Acquisition
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Melar 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 Melar 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 Melar Acquisition Corp, you can compare the effects of market volatilities on YHN Acquisition and Melar 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 Melar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Melar Acquisition.
Diversification Opportunities for YHN Acquisition and Melar Acquisition
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between YHN and Melar is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Melar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melar 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 Melar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melar Acquisition Corp has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Melar Acquisition go up and down completely randomly.
Pair Corralation between YHN Acquisition and Melar Acquisition
Assuming the 90 days horizon YHN Acquisition is expected to generate 185.85 times less return on investment than Melar Acquisition. But when comparing it to its historical volatility, YHN Acquisition I is 334.21 times less risky than Melar Acquisition. It trades about 0.22 of its potential returns per unit of risk. Melar Acquisition Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Melar Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Melar Acquisition Corp or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.33% |
| Values | Daily Returns |
YHN Acquisition I vs. Melar Acquisition Corp
Performance |
| Timeline |
| YHN Acquisition I |
| Melar Acquisition Corp |
YHN Acquisition and Melar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Melar Acquisition
The main advantage of trading using opposite YHN Acquisition and Melar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Melar 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 Melar Acquisition will offset losses from the drop in Melar Acquisition'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 |
| Melar Acquisition vs. Distoken Acquisition | Melar Acquisition vs. dMY Squared Technology | Melar Acquisition vs. YHN Acquisition I | Melar 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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