Correlation Between YHN Acquisition and Horizon Space
Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Horizon Space 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 Horizon Space 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 Horizon Space Acquisition, you can compare the effects of market volatilities on YHN Acquisition and Horizon Space 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 Horizon Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Horizon Space.
Diversification Opportunities for YHN Acquisition and Horizon Space
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YHN and Horizon is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Horizon Space Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Space 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 Horizon Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Space Acquisition has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Horizon Space go up and down completely randomly.
Pair Corralation between YHN Acquisition and Horizon Space
Assuming the 90 days horizon YHN Acquisition I is expected to generate 6.7 times more return on investment than Horizon Space. However, YHN Acquisition is 6.7 times more volatile than Horizon Space Acquisition. It trades about 0.02 of its potential returns per unit of risk. Horizon Space Acquisition is currently generating about 0.08 per unit of risk. If you would invest 1,002 in YHN Acquisition I on September 25, 2024 and sell it today you would earn a total of 8.00 from holding YHN Acquisition I or generate 0.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 42.19% |
Values | Daily Returns |
YHN Acquisition I vs. Horizon Space Acquisition
Performance |
Timeline |
YHN Acquisition I |
Horizon Space Acquisition |
YHN Acquisition and Horizon Space Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YHN Acquisition and Horizon Space
The main advantage of trading using opposite YHN Acquisition and Horizon Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YHN Acquisition position performs unexpectedly, Horizon Space 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 Horizon Space will offset losses from the drop in Horizon Space's long position.YHN Acquisition vs. Voyager Acquisition Corp | YHN Acquisition vs. CO2 Energy Transition | YHN Acquisition vs. Vine Hill Capital | YHN Acquisition vs. Broad Capital Acquisition |
Horizon Space vs. Voyager Acquisition Corp | Horizon Space vs. CO2 Energy Transition | Horizon Space vs. Vine Hill Capital | Horizon Space vs. Broad Capital 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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