Correlation Between Nextnav Acquisition and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on Nextnav Acquisition and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Proficient Auto.
Diversification Opportunities for Nextnav Acquisition and Proficient Auto
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nextnav and Proficient is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Proficient Auto go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Proficient Auto
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 1.15 times more return on investment than Proficient Auto. However, Nextnav Acquisition is 1.15 times more volatile than Proficient Auto Logistics,. It trades about 0.41 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about 0.34 per unit of risk. If you would invest 1,287 in Nextnav Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 452.00 from holding Nextnav Acquisition Corp or generate 35.12% 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. Proficient Auto Logistics,
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Proficient Auto Logi |
Nextnav Acquisition and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Proficient Auto
The main advantage of trading using opposite Nextnav Acquisition and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
| Proficient Auto vs. Hawkins | Proficient Auto vs. Hudson Technologies | Proficient Auto vs. Zhihu Inc ADR | Proficient Auto vs. Avient 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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