Correlation Between Advanced Proteome and NextNav Warrant

Can any of the company-specific risk be diversified away by investing in both Advanced Proteome and NextNav Warrant 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 Advanced Proteome and NextNav Warrant into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advanced Proteome Therapeutics and NextNav Warrant, you can compare the effects of market volatilities on Advanced Proteome and NextNav Warrant 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 Advanced Proteome with a short position of NextNav Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Proteome and NextNav Warrant.

Diversification Opportunities for Advanced Proteome and NextNav Warrant

0.0

Correlation Coefficient

Advanced Proteome  NextNav Warrant

Pay attention - limited upside

The 3 months correlation between Advanced and NextNav is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Proteome Therapeutics and NextNav Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextNav Warrant and Advanced Proteome 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 Advanced Proteome Therapeutics are associated (or correlated) with NextNav Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextNav Warrant has no effect on the direction of Advanced Proteome i.e., Advanced Proteome and NextNav Warrant go up and down completely randomly.

Pair Corralation between Advanced Proteome and NextNav Warrant

If you would invest  535.00  in NextNav Warrant on May 27, 2025 and sell it today you would earn a total of  85.00  from holding NextNav Warrant or generate 15.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Advanced Proteome Therapeutics  vs.  NextNav Warrant

Advanced Proteome

Risk-Adjusted Performance

Weakest

Over the last 90 days Advanced Proteome Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Advanced Proteome is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

NextNav Warrant

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in NextNav Warrant are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, NextNav Warrant showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Proteome and NextNav Warrant

The main advantage of trading using opposite Advanced Proteome and NextNav Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Proteome position performs unexpectedly, NextNav Warrant 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 Warrant will offset losses from the drop in NextNav Warrant's long position.

The idea behind Advanced Proteome Therapeutics and NextNav Warrant pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.