Correlation Between Nextnav Acquisition and Infrared Cameras
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Infrared Cameras 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 Infrared Cameras 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 Infrared Cameras Holdings, you can compare the effects of market volatilities on Nextnav Acquisition and Infrared Cameras 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 Infrared Cameras. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Infrared Cameras.
Diversification Opportunities for Nextnav Acquisition and Infrared Cameras
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nextnav and Infrared is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Infrared Cameras Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrared Cameras Holdings 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 Infrared Cameras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrared Cameras Holdings has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Infrared Cameras go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Infrared Cameras
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 0.71 times more return on investment than Infrared Cameras. However, Nextnav Acquisition Corp is 1.4 times less risky than Infrared Cameras. It trades about -0.12 of its potential returns per unit of risk. Infrared Cameras Holdings is currently generating about -0.18 per unit of risk. If you would invest 1,176 in Nextnav Acquisition Corp on November 28, 2024 and sell it today you would lose (123.00) from holding Nextnav Acquisition Corp or give up 10.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextnav Acquisition Corp vs. Infrared Cameras Holdings
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Infrared Cameras Holdings |
Nextnav Acquisition and Infrared Cameras Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Infrared Cameras
The main advantage of trading using opposite Nextnav Acquisition and Infrared Cameras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Infrared Cameras 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 Infrared Cameras will offset losses from the drop in Infrared Cameras' long position.| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
| Infrared Cameras vs. Gentex | Infrared Cameras vs. Marine Products | Infrared Cameras vs. Magna International | Infrared Cameras vs. Strategic Education |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |