Correlation Between Nextnav Acquisition and Rekor Systems
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Rekor Systems 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 Rekor Systems 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 Rekor Systems, you can compare the effects of market volatilities on Nextnav Acquisition and Rekor Systems 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 Rekor Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Rekor Systems.
Diversification Opportunities for Nextnav Acquisition and Rekor Systems
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nextnav and Rekor is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Rekor Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rekor Systems 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 Rekor Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rekor Systems has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Rekor Systems go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Rekor Systems
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 0.8 times more return on investment than Rekor Systems. However, Nextnav Acquisition Corp is 1.25 times less risky than Rekor Systems. It trades about 0.45 of its potential returns per unit of risk. Rekor Systems is currently generating about -0.08 per unit of risk. If you would invest 1,018 in Nextnav Acquisition Corp on August 24, 2024 and sell it today you would earn a total of 536.00 from holding Nextnav Acquisition Corp or generate 52.65% 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. Rekor Systems
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Rekor Systems |
Nextnav Acquisition and Rekor Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Rekor Systems
The main advantage of trading using opposite Nextnav Acquisition and Rekor Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Rekor Systems 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 Rekor Systems will offset losses from the drop in Rekor Systems' long position.| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
| Rekor Systems vs. Aurora Mobile | Rekor Systems vs. Arqit Quantum | Rekor Systems vs. Bridgeline Digital | Rekor Systems vs. Repay Holdings 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |