Correlation Between Nextnav Acquisition and Nubia Brand
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Nubia Brand 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 Nubia Brand 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 Nubia Brand International, you can compare the effects of market volatilities on Nextnav Acquisition and Nubia Brand 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 Nubia Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Nubia Brand.
Diversification Opportunities for Nextnav Acquisition and Nubia Brand
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nextnav and Nubia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Nubia Brand International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nubia Brand International 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 Nubia Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nubia Brand International has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Nubia Brand go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Nubia Brand
If you would invest (100.00) in Nubia Brand International on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Nubia Brand International or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nextnav Acquisition Corp vs. Nubia Brand International
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Nubia Brand International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Nextnav Acquisition and Nubia Brand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Nubia Brand
The main advantage of trading using opposite Nextnav Acquisition and Nubia Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Nubia Brand 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 Nubia Brand will offset losses from the drop in Nubia Brand'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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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