Correlation Between Nextnav Acquisition and Stingray
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on Nextnav Acquisition and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Stingray.
Diversification Opportunities for Nextnav Acquisition and Stingray
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nextnav and Stingray is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Stingray go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Stingray
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 1.88 times more return on investment than Stingray. However, Nextnav Acquisition is 1.88 times more volatile than Stingray Group. It trades about 0.12 of its potential returns per unit of risk. Stingray Group is currently generating about 0.06 per unit of risk. If you would invest 273.00 in Nextnav Acquisition Corp on August 27, 2024 and sell it today you would earn a total of 1,314 from holding Nextnav Acquisition Corp or generate 481.32% 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. Stingray Group
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Stingray Group |
Nextnav Acquisition and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Stingray
The main advantage of trading using opposite Nextnav Acquisition and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
| Stingray vs. Nextnav Acquisition Corp | Stingray vs. China Clean Energy | Stingray vs. Plexus Corp | Stingray vs. Emerson Radio |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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