Correlation Between NextNav Warrant and KRAFT
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By analyzing existing cross correlation between NextNav Warrant and KRAFT HEINZ FOODS, you can compare the effects of market volatilities on NextNav Warrant and KRAFT 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 KRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextNav Warrant and KRAFT.
Diversification Opportunities for NextNav Warrant and KRAFT
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NextNav and KRAFT is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding NextNav Warrant and KRAFT HEINZ FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAFT HEINZ FOODS 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 KRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAFT HEINZ FOODS has no effect on the direction of NextNav Warrant i.e., NextNav Warrant and KRAFT go up and down completely randomly.
Pair Corralation between NextNav Warrant and KRAFT
Assuming the 90 days horizon NextNav Warrant is expected to generate 6.75 times more return on investment than KRAFT. However, NextNav Warrant is 6.75 times more volatile than KRAFT HEINZ FOODS. It trades about 0.09 of its potential returns per unit of risk. KRAFT HEINZ FOODS is currently generating about 0.01 per unit of risk. If you would invest 63.00 in NextNav Warrant on November 30, 2024 and sell it today you would earn a total of 281.00 from holding NextNav Warrant or generate 446.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.09% |
| Values | Daily Returns |
NextNav Warrant vs. KRAFT HEINZ FOODS
Performance |
| Timeline |
| NextNav Warrant |
| KRAFT HEINZ FOODS |
NextNav Warrant and KRAFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NextNav Warrant and KRAFT
The main advantage of trading using opposite NextNav Warrant and KRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextNav Warrant position performs unexpectedly, KRAFT 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 KRAFT will offset losses from the drop in KRAFT's long position.The idea behind NextNav Warrant and KRAFT HEINZ FOODS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| KRAFT vs. Western Digital | KRAFT vs. Small Cap Premium | KRAFT vs. BioNTech SE | KRAFT vs. Transcontinental Realty Investors |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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