Correlation Between Nextnav Acquisition and Paragon Offshore
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Paragon Offshore 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 Paragon Offshore 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 Paragon Offshore Plc, you can compare the effects of market volatilities on Nextnav Acquisition and Paragon Offshore 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 Paragon Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Paragon Offshore.
Diversification Opportunities for Nextnav Acquisition and Paragon Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nextnav and Paragon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Paragon Offshore Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paragon Offshore Plc 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 Paragon Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paragon Offshore Plc has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Paragon Offshore go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Paragon Offshore
If you would invest 286.00 in Nextnav Acquisition Corp on September 5, 2024 and sell it today you would earn a total of 1,348 from holding Nextnav Acquisition Corp or generate 471.33% 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. Paragon Offshore Plc
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Paragon Offshore Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nextnav Acquisition and Paragon Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Paragon Offshore
The main advantage of trading using opposite Nextnav Acquisition and Paragon Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Paragon Offshore 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 Paragon Offshore will offset losses from the drop in Paragon Offshore's long position.| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
| Paragon Offshore vs. Nextnav Acquisition Corp | Paragon Offshore vs. The Cheesecake Factory | Paragon Offshore vs. Dalata Hotel Group | Paragon Offshore vs. Shake Shack |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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