Correlation Between Nextnav Acquisition and Service
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By analyzing existing cross correlation between Nextnav Acquisition Corp and Service Properties Trust, you can compare the effects of market volatilities on Nextnav Acquisition and Service 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 Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Service.
Diversification Opportunities for Nextnav Acquisition and Service
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nextnav and Service is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Service Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Service Properties Trust 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 Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Service Properties Trust has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Service go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Service
Allowing for the 90-day total investment horizon Nextnav Acquisition is expected to generate 4.14 times less return on investment than Service. But when comparing it to its historical volatility, Nextnav Acquisition Corp is 9.54 times less risky than Service. It trades about 0.1 of its potential returns per unit of risk. Service Properties Trust is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,182 in Service Properties Trust on September 5, 2024 and sell it today you would earn a total of 1,131 from holding Service Properties Trust or generate 13.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
Nextnav Acquisition Corp vs. Service Properties Trust
Performance |
| Timeline |
| Nextnav Acquisition Corp |
| Service Properties Trust |
Nextnav Acquisition and Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextnav Acquisition and Service
The main advantage of trading using opposite Nextnav Acquisition and Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Service 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 Service will offset losses from the drop in Service's long position.| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
| Service vs. PVH Corp | Service vs. Kontoor Brands | Service vs. Ross Stores | Service vs. Nextnav Acquisition 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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