Correlation Between Voyager Acquisition and YHN Acquisition

Can any of the company-specific risk be diversified away by investing in both Voyager Acquisition and YHN 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 Voyager Acquisition and YHN Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Voyager Acquisition Corp and YHN Acquisition I, you can compare the effects of market volatilities on Voyager Acquisition and YHN 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 Voyager Acquisition with a short position of YHN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voyager Acquisition and YHN Acquisition.

Diversification Opportunities for Voyager Acquisition and YHN Acquisition

0.06

Correlation Coefficient

Voyager Acquisition  YHN Acquisition

Significant diversification

The 3 months correlation between Voyager and YHN is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Voyager Acquisition Corp and YHN Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YHN Acquisition I and Voyager 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 Voyager Acquisition Corp are associated (or correlated) with YHN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YHN Acquisition I has no effect on the direction of Voyager Acquisition i.e., Voyager Acquisition and YHN Acquisition go up and down completely randomly.

Pair Corralation between Voyager Acquisition and YHN Acquisition

Given the investment horizon of 90 days Voyager Acquisition is expected to generate 39.13 times less return on investment than YHN Acquisition. But when comparing it to its historical volatility, Voyager Acquisition Corp is 71.99 times less risky than YHN Acquisition. It trades about 0.14 of its potential returns per unit of risk. YHN Acquisition I is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  13.00  in YHN Acquisition I on December 28, 2024 and sell it today you would earn a total of  0.01  from holding YHN Acquisition I or generate 0.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	70.49%
Values	Daily Returns

Voyager Acquisition Corp  vs.  YHN Acquisition I

Voyager Acquisition Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Voyager Acquisition Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Voyager Acquisition is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

YHN Acquisition I

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in YHN Acquisition I are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, YHN Acquisition reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Voyager Acquisition and YHN Acquisition

The main advantage of trading using opposite Voyager Acquisition and YHN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voyager Acquisition position performs unexpectedly, YHN 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 YHN Acquisition will offset losses from the drop in YHN Acquisition's long position.

The idea behind Voyager Acquisition Corp and YHN Acquisition I pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.