Correlation Between CINCINNATI and Nextnav Acquisition
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By analyzing existing cross correlation between CINCINNATI FINL P and Nextnav Acquisition Corp, you can compare the effects of market volatilities on CINCINNATI 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 CINCINNATI with a short position of Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of CINCINNATI and Nextnav Acquisition.
Diversification Opportunities for CINCINNATI and Nextnav Acquisition
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CINCINNATI and Nextnav is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CINCINNATI FINL P 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 CINCINNATI 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 CINCINNATI FINL P 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 CINCINNATI i.e., CINCINNATI and Nextnav Acquisition go up and down completely randomly.
Pair Corralation between CINCINNATI and Nextnav Acquisition
Assuming the 90 days trading horizon CINCINNATI FINL P is expected to under-perform the Nextnav Acquisition. But the bond apears to be less risky and, when comparing its historical volatility, CINCINNATI FINL P is 7.08 times less risky than Nextnav Acquisition. The bond trades about -0.01 of its potential returns per unit of risk. The Nextnav Acquisition Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 87.47% |
| Values | Daily Returns |
CINCINNATI FINL P vs. Nextnav Acquisition Corp
Performance |
| Timeline |
| CINCINNATI FINL P |
| Nextnav Acquisition Corp |
CINCINNATI and Nextnav Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CINCINNATI and Nextnav Acquisition
The main advantage of trading using opposite CINCINNATI and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CINCINNATI 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.| CINCINNATI vs. Nextnav Acquisition Corp | CINCINNATI vs. Hafnia Limited | CINCINNATI vs. Analog Devices | CINCINNATI vs. NextNav Warrant |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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