Correlation Between YHN Acquisition and Onyx Acquisition
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Onyx 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 Onyx 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 Onyx Acquisition Co, you can compare the effects of market volatilities on YHN Acquisition and Onyx 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 Onyx Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Onyx Acquisition.
Diversification Opportunities for YHN Acquisition and Onyx Acquisition
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YHN and Onyx is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Onyx Acquisition Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onyx 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 Onyx Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onyx Acquisition has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Onyx Acquisition go up and down completely randomly.
Pair Corralation between YHN Acquisition and Onyx Acquisition
Assuming the 90 days horizon YHN Acquisition is expected to generate 1.35 times less return on investment than Onyx Acquisition. But when comparing it to its historical volatility, YHN Acquisition I is 4.56 times less risky than Onyx Acquisition. It trades about 0.14 of its potential returns per unit of risk. Onyx Acquisition Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,121 in Onyx Acquisition Co on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Onyx Acquisition Co or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 65.91% |
| Values | Daily Returns |
YHN Acquisition I vs. Onyx Acquisition Co
Performance |
| Timeline |
| YHN Acquisition I |
| Onyx Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
YHN Acquisition and Onyx Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and Onyx Acquisition
The main advantage of trading using opposite YHN Acquisition and Onyx Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Onyx 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 Onyx Acquisition will offset losses from the drop in Onyx Acquisition's long position.| YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. YHN Acquisition I | YHN Acquisition vs. CO2 Energy Transition | YHN Acquisition vs. Vine Hill Capital |
| Onyx Acquisition vs. KVH Industries | Onyx Acquisition vs. Rackspace Technology | Onyx Acquisition vs. Dave Busters Entertainment | Onyx Acquisition vs. Datadog |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |