Correlation Between YHN Acquisition and Mountain Crest
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Mountain Crest 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 Mountain Crest 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 Mountain Crest Acquisition, you can compare the effects of market volatilities on YHN Acquisition and Mountain Crest 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 Mountain Crest. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Mountain Crest.
Diversification Opportunities for YHN Acquisition and Mountain Crest
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YHN and Mountain is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Mountain Crest Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Crest Acqui 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 Mountain Crest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Crest Acqui has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Mountain Crest go up and down completely randomly.
Pair Corralation between YHN Acquisition and Mountain Crest
Assuming the 90 days horizon YHN Acquisition I is expected to generate 0.27 times more return on investment than Mountain Crest. However, YHN Acquisition I is 3.65 times less risky than Mountain Crest. It trades about 0.26 of its potential returns per unit of risk. Mountain Crest Acquisition is currently generating about 0.02 per unit of risk. If you would invest 1,000.00 in YHN Acquisition I on August 26, 2024 and sell it today you would earn a total of 19.00 from holding YHN Acquisition I or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 21.46% |
| Values | Daily Returns |
YHN Acquisition I vs. Mountain Crest Acquisition
Performance |
| Timeline |
| YHN Acquisition I |
| Mountain Crest Acqui |
YHN Acquisition and Mountain Crest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Mountain Crest
The main advantage of trading using opposite YHN Acquisition and Mountain Crest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Mountain Crest 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 Mountain Crest will offset losses from the drop in Mountain Crest's long position.| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. YHN Acquisition I | YHN Acquisition vs. Vine Hill Capital | YHN Acquisition vs. DP Cap Acquisition |
| Mountain Crest vs. Bellevue Life Sciences | Mountain Crest vs. Manaris Corp | Mountain Crest vs. Metal Sky Star | Mountain Crest vs. Investcorp Europe Acquisition |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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