Correlation Between Grupo Aeroportuario and Nextnav Acquisition
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and Nextnav 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 Grupo Aeroportuario and Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Aeroportuario del and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Grupo Aeroportuario and Nextnav 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 Grupo Aeroportuario with a short position of Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Nextnav Acquisition.
Diversification Opportunities for Grupo Aeroportuario and Nextnav Acquisition
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Nextnav is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Nextnav Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextnav Acquisition Corp and Grupo Aeroportuario 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 Grupo Aeroportuario del are associated (or correlated) with Nextnav Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextnav Acquisition Corp has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Nextnav Acquisition go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and Nextnav Acquisition
Considering the 90-day investment horizon Grupo Aeroportuario is expected to generate 8.68 times less return on investment than Nextnav Acquisition. But when comparing it to its historical volatility, Grupo Aeroportuario del is 2.04 times less risky than Nextnav Acquisition. It trades about 0.03 of its potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Nextnav Acquisition Corp on September 2, 2024 and sell it today you would earn a total of 1,345 from holding Nextnav Acquisition Corp or generate 341.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. Nextnav Acquisition Corp
Performance |
| Timeline |
| Grupo Aeroportuario del |
| Nextnav Acquisition Corp |
Grupo Aeroportuario and Nextnav Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and Nextnav Acquisition
The main advantage of trading using opposite Grupo Aeroportuario and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, Nextnav 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 Nextnav Acquisition will offset losses from the drop in Nextnav Acquisition's long position.| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG | Grupo Aeroportuario vs. Grupo Aeroportuario del |
| Nextnav Acquisition vs. Palo Alto Networks | Nextnav Acquisition vs. GigaCloud Technology Class | Nextnav Acquisition vs. Pagaya Technologies | Nextnav Acquisition vs. Telos Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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