Correlation Between Nextnav Acquisition and Tucows
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Tucows 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 Nextnav Acquisition and Tucows into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextnav Acquisition Corp and Tucows Inc, you can compare the effects of market volatilities on Nextnav Acquisition and Tucows 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 Acquisition with a short position of Tucows. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Tucows.
Diversification Opportunities for Nextnav Acquisition and Tucows
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nextnav and Tucows is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Tucows Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tucows Inc and Nextnav Acquisition 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 Acquisition Corp are associated (or correlated) with Tucows. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tucows Inc has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Tucows go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Tucows
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 1.96 times more return on investment than Tucows. However, Nextnav Acquisition is 1.96 times more volatile than Tucows Inc. It trades about 0.11 of its potential returns per unit of risk. Tucows Inc is currently generating about 0.0 per unit of risk. If you would invest 485.00 in Nextnav Acquisition Corp on February 7, 2024 and sell it today you would earn a total of 369.00 from holding Nextnav Acquisition Corp or generate 76.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Nextnav Acquisition Corp vs. Tucows Inc
Performance |
Timeline |
Nextnav Acquisition Corp |
Tucows Inc |
Nextnav Acquisition and Tucows Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nextnav Acquisition and Tucows
The main advantage of trading using opposite Nextnav Acquisition and Tucows positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Tucows 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 Tucows will offset losses from the drop in Tucows' long position.Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
Tucows vs. NV5 Global | Tucows vs. Diamond Hill Investment | Tucows vs. Mesa Laboratories | Tucows vs. Winmark |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |