Correlation Between Nextnav Acquisition and Marqeta
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Marqeta 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 Marqeta 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 Marqeta, you can compare the effects of market volatilities on Nextnav Acquisition and Marqeta 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 Marqeta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Marqeta.
Diversification Opportunities for Nextnav Acquisition and Marqeta
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nextnav and Marqeta is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Marqeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marqeta 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 Marqeta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marqeta has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Marqeta go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Marqeta
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 0.43 times more return on investment than Marqeta. However, Nextnav Acquisition Corp is 2.3 times less risky than Marqeta. It trades about 0.46 of its potential returns per unit of risk. Marqeta is currently generating about -0.05 per unit of risk. If you would invest 1,006 in Nextnav Acquisition Corp on August 23, 2024 and sell it today you would earn a total of 548.00 from holding Nextnav Acquisition Corp or generate 54.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextnav Acquisition Corp vs. Marqeta
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Marqeta |
Nextnav Acquisition and Marqeta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Marqeta
The main advantage of trading using opposite Nextnav Acquisition and Marqeta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Marqeta 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 Marqeta will offset losses from the drop in Marqeta's long position.| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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