Correlation Between Haymaker Acquisition and MFS High

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

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

Diversification Opportunities for Haymaker Acquisition and MFS High

-0.19

Correlation Coefficient

Haymaker Acquisition  MFS High

Good diversification

The 3 months correlation between Haymaker and MFS is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Haymaker Acquisition Corp and MFS High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High Yield and Haymaker 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 Haymaker Acquisition Corp are associated (or correlated) with MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Yield has no effect on the direction of Haymaker Acquisition i.e., Haymaker Acquisition and MFS High go up and down completely randomly.

Pair Corralation between Haymaker Acquisition and MFS High

Given the investment horizon of 90 days Haymaker Acquisition Corp is expected to generate 0.28 times more return on investment than MFS High. However, Haymaker Acquisition Corp is 3.55 times less risky than MFS High. It trades about 0.07 of its potential returns per unit of risk. MFS High Yield is currently generating about -0.05 per unit of risk. If you would invest  1,095  in Haymaker Acquisition Corp on March 27, 2025 and sell it today you would earn a total of  11.00  from holding Haymaker Acquisition Corp or generate 1.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Haymaker Acquisition Corp  vs.  MFS High Yield

Haymaker Acquisition Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Haymaker Acquisition Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Haymaker Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

MFS High Yield

Risk-Adjusted Performance

Very Weak

Over the last 90 days MFS High Yield has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, MFS High is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Haymaker Acquisition and MFS High

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

The idea behind Haymaker Acquisition Corp and MFS High Yield 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.