Correlation Between YHN Acquisition and PowerUp Acquisition
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and PowerUp 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 PowerUp 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 PowerUp Acquisition Corp, you can compare the effects of market volatilities on YHN Acquisition and PowerUp 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 PowerUp Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and PowerUp Acquisition.
Diversification Opportunities for YHN Acquisition and PowerUp Acquisition
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between YHN and PowerUp is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and PowerUp Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerUp 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 PowerUp Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerUp Acquisition Corp has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and PowerUp Acquisition go up and down completely randomly.
Pair Corralation between YHN Acquisition and PowerUp Acquisition
Assuming the 90 days horizon YHN Acquisition I is expected to generate 0.05 times more return on investment than PowerUp Acquisition. However, YHN Acquisition I is 19.33 times less risky than PowerUp Acquisition. It trades about -0.25 of its potential returns per unit of risk. PowerUp Acquisition Corp is currently generating about -0.08 per unit of risk. If you would invest 1,040 in YHN Acquisition I on November 27, 2024 and sell it today you would lose (19.00) from holding YHN Acquisition I or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.22% |
| Values | Daily Returns |
YHN Acquisition I vs. PowerUp Acquisition Corp
Performance |
| Timeline |
| YHN Acquisition I |
Risk-Adjusted Performance
Weak
Weak | Strong |
| PowerUp Acquisition Corp |
YHN Acquisition and PowerUp Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YHN Acquisition and PowerUp Acquisition
The main advantage of trading using opposite YHN Acquisition and PowerUp Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, PowerUp 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 PowerUp Acquisition will offset losses from the drop in PowerUp 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. 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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