Correlation Between Nextnav Acquisition and Spectrum Brands
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Spectrum Brands 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 Spectrum Brands 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 Spectrum Brands Holdings, you can compare the effects of market volatilities on Nextnav Acquisition and Spectrum Brands 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 Spectrum Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Spectrum Brands.
Diversification Opportunities for Nextnav Acquisition and Spectrum Brands
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nextnav and Spectrum is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Spectrum Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectrum Brands 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 Spectrum Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectrum Brands Holdings has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Spectrum Brands go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Spectrum Brands
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 2.11 times more return on investment than Spectrum Brands. However, Nextnav Acquisition is 2.11 times more volatile than Spectrum Brands Holdings. It trades about 0.14 of its potential returns per unit of risk. Spectrum Brands Holdings is currently generating about 0.04 per unit of risk. If you would invest 854.00 in Nextnav Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 885.00 from holding Nextnav Acquisition Corp or generate 103.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextnav Acquisition Corp vs. Spectrum Brands Holdings
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Spectrum Brands Holdings |
Nextnav Acquisition and Spectrum Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Spectrum Brands
The main advantage of trading using opposite Nextnav Acquisition and Spectrum Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Spectrum Brands 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 Spectrum Brands will offset losses from the drop in Spectrum Brands' long position.| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
| Spectrum Brands vs. European Wax Center | Spectrum Brands vs. Inter Parfums | Spectrum Brands vs. Mannatech Incorporated | Spectrum Brands vs. Nu Skin Enterprises |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |