Correlation Between Stingray and Nextnav Acquisition
Can any of the company-specific risk be diversified away by investing in both Stingray 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 Stingray and Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stingray Group and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Stingray 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 Stingray with a short position of Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stingray and Nextnav Acquisition.
Diversification Opportunities for Stingray and Nextnav Acquisition
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stingray and Nextnav is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Stingray Group 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 Stingray 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 Stingray Group 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 Stingray i.e., Stingray and Nextnav Acquisition go up and down completely randomly.
Pair Corralation between Stingray and Nextnav Acquisition
Assuming the 90 days horizon Stingray is expected to generate 2.54 times less return on investment than Nextnav Acquisition. But when comparing it to its historical volatility, Stingray Group is 1.77 times less risky than Nextnav Acquisition. It trades about 0.07 of its potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 302.00 in Nextnav Acquisition Corp on August 27, 2024 and sell it today you would earn a total of 1,285 from holding Nextnav Acquisition Corp or generate 425.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stingray Group vs. Nextnav Acquisition Corp
Performance |
| Timeline |
| Stingray Group |
| Nextnav Acquisition Corp |
Stingray and Nextnav Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stingray and Nextnav Acquisition
The main advantage of trading using opposite Stingray and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stingray 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.| Stingray vs. Nextnav Acquisition Corp | Stingray vs. China Clean Energy | Stingray vs. Plexus Corp | Stingray vs. Emerson Radio |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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