Correlation Between Sellas Life and Nextnav Acquisition
Can any of the company-specific risk be diversified away by investing in both Sellas Life and Nextnav Acquisition 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 Sellas Life and Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Sellas Life and Nextnav Acquisition 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 Sellas Life with a short position of Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Nextnav Acquisition.
Diversification Opportunities for Sellas Life and Nextnav Acquisition
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sellas and Nextnav is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and Nextnav Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextnav Acquisition Corp and Sellas Life 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 Sellas Life Sciences are associated (or correlated) with Nextnav Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextnav Acquisition Corp has no effect on the direction of Sellas Life i.e., Sellas Life and Nextnav Acquisition go up and down completely randomly.
Pair Corralation between Sellas Life and Nextnav Acquisition
Considering the 90-day investment horizon Sellas Life is expected to generate 11.71 times less return on investment than Nextnav Acquisition. In addition to that, Sellas Life is 1.21 times more volatile than Nextnav Acquisition Corp. It trades about 0.01 of its total potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about 0.1 per unit of volatility. If you would invest 295.00 in Nextnav Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 1,444 from holding Nextnav Acquisition Corp or generate 489.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sellas Life Sciences vs. Nextnav Acquisition Corp
Performance |
| Timeline |
| Sellas Life Sciences |
| Nextnav Acquisition Corp |
Sellas Life and Nextnav Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and Nextnav Acquisition
The main advantage of trading using opposite Sellas Life and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, Nextnav Acquisition 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 Nextnav Acquisition will offset losses from the drop in Nextnav Acquisition's long position.| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |