Correlation Between YHN Acquisition and Generation Asia

Can any of the company-specific risk be diversified away by investing in both YHN Acquisition and Generation Asia 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 Generation Asia 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 Generation Asia I, you can compare the effects of market volatilities on YHN Acquisition and Generation Asia 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 Generation Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of YHN Acquisition and Generation Asia.

Diversification Opportunities for YHN Acquisition and Generation Asia

0.23

Correlation Coefficient

YHN Acquisition  Generation Asia

Modest diversification

The 3 months correlation between YHN and Generation is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding YHN Acquisition I and Generation Asia I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Asia I 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 Generation Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Asia I has no effect on the direction of YHN Acquisition i.e., YHN Acquisition and Generation Asia go up and down completely randomly.

Pair Corralation between YHN Acquisition and Generation Asia

If you would invest  1,013  in YHN Acquisition I on October 20, 2024 and sell it today you would earn a total of  4.00  from holding YHN Acquisition I or generate 0.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.26%
Values	Daily Returns

YHN Acquisition I  vs.  Generation Asia I

YHN Acquisition I

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in YHN Acquisition I are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, YHN Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Generation Asia I

Risk-Adjusted Performance

0 of 100

Strong

Over the last 90 days Generation Asia I has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Generation Asia may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with YHN Acquisition and Generation Asia

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

The idea behind YHN Acquisition I and Generation Asia 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.