Correlation Between NextNav Warrant and BCB Bancorp
Can any of the company-specific risk be diversified away by investing in both NextNav Warrant and BCB Bancorp 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 Warrant and BCB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NextNav Warrant and BCB Bancorp, you can compare the effects of market volatilities on NextNav Warrant and BCB Bancorp 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 Warrant with a short position of BCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextNav Warrant and BCB Bancorp.
Diversification Opportunities for NextNav Warrant and BCB Bancorp
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NextNav and BCB is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding NextNav Warrant and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp and NextNav Warrant 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 Warrant are associated (or correlated) with BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of NextNav Warrant i.e., NextNav Warrant and BCB Bancorp go up and down completely randomly.
Pair Corralation between NextNav Warrant and BCB Bancorp
Assuming the 90 days horizon NextNav Warrant is expected to generate 2.28 times more return on investment than BCB Bancorp. However, NextNav Warrant is 2.28 times more volatile than BCB Bancorp. It trades about 0.13 of its potential returns per unit of risk. BCB Bancorp is currently generating about 0.09 per unit of risk. If you would invest 276.00 in NextNav Warrant on September 3, 2024 and sell it today you would earn a total of 401.00 from holding NextNav Warrant or generate 145.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.8% |
| Values | Daily Returns |
NextNav Warrant vs. BCB Bancorp
Performance |
| Timeline |
| NextNav Warrant |
| BCB Bancorp |
NextNav Warrant and BCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NextNav Warrant and BCB Bancorp
The main advantage of trading using opposite NextNav Warrant and BCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextNav Warrant position performs unexpectedly, BCB Bancorp 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 BCB Bancorp will offset losses from the drop in BCB Bancorp's long position.| NextNav Warrant vs. HUMANA INC | NextNav Warrant vs. Aquagold International | NextNav Warrant vs. Barloworld Ltd ADR | NextNav Warrant vs. Morningstar Unconstrained Allocation |
| BCB Bancorp vs. Provident Financial Services | BCB Bancorp vs. First Mid Illinois | BCB Bancorp vs. ConnectOne Bancorp | BCB Bancorp vs. Finward Bancorp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stocks Directory Find actively traded stocks across global markets |