Correlation Between Nextnav Acquisition and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Boyd Gaming 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 Nextnav Acquisition and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextnav Acquisition Corp and Boyd Gaming, you can compare the effects of market volatilities on Nextnav Acquisition and Boyd Gaming 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 Nextnav Acquisition with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Boyd Gaming.
Diversification Opportunities for Nextnav Acquisition and Boyd Gaming
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nextnav and Boyd is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Nextnav 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 Nextnav Acquisition Corp are associated (or correlated) with Boyd Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyd Gaming has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Boyd Gaming go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Boyd Gaming
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 2.77 times more return on investment than Boyd Gaming. However, Nextnav Acquisition is 2.77 times more volatile than Boyd Gaming. It trades about 0.14 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.06 per unit of risk. If you would invest 407.00 in Nextnav Acquisition Corp on September 4, 2024 and sell it today you would earn a total of 1,318 from holding Nextnav Acquisition Corp or generate 323.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextnav Acquisition Corp vs. Boyd Gaming
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Boyd Gaming |
Nextnav Acquisition and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Boyd Gaming
The main advantage of trading using opposite Nextnav Acquisition and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Boyd Gaming 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 Boyd Gaming will offset losses from the drop in Boyd Gaming's long position.| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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