Correlation Between Semtech and Nextnav Acquisition
Can any of the company-specific risk be diversified away by investing in both Semtech 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 Semtech and Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semtech and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Semtech 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 Semtech with a short position of Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semtech and Nextnav Acquisition.
Diversification Opportunities for Semtech and Nextnav Acquisition
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Semtech and Nextnav is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Semtech 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 Semtech 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 Semtech 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 Semtech i.e., Semtech and Nextnav Acquisition go up and down completely randomly.
Pair Corralation between Semtech and Nextnav Acquisition
Given the investment horizon of 90 days Semtech is expected to generate 1.91 times less return on investment than Nextnav Acquisition. In addition to that, Semtech is 1.03 times more volatile than Nextnav Acquisition Corp. It trades about 0.22 of its total potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about 0.44 per unit of volatility. If you would invest 1,145 in Nextnav Acquisition Corp on August 27, 2024 and sell it today you would earn a total of 469.00 from holding Nextnav Acquisition Corp or generate 40.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semtech vs. Nextnav Acquisition Corp
Performance |
| Timeline |
| Semtech |
| Nextnav Acquisition Corp |
Semtech and Nextnav Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semtech and Nextnav Acquisition
The main advantage of trading using opposite Semtech and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semtech 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.| Semtech vs. Power Integrations | Semtech vs. Diodes Incorporated | Semtech vs. MACOM Technology Solutions | Semtech vs. Cirrus Logic |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |