Correlation Between Nextnav Acquisition and NetApp

Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and NetApp 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 NetApp 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 NetApp Inc, you can compare the effects of market volatilities on Nextnav Acquisition and NetApp 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 NetApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and NetApp.

Diversification Opportunities for Nextnav Acquisition and NetApp

0.6

Correlation Coefficient

Nextnav Acquisition  NetApp

Poor diversification

The 3 months correlation between Nextnav and NetApp is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and NetApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetApp 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 NetApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetApp Inc has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and NetApp go up and down completely randomly.

Pair Corralation between Nextnav Acquisition and NetApp

Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to under-perform the NetApp. In addition to that, Nextnav Acquisition is 2.09 times more volatile than NetApp Inc. It trades about -0.05 of its total potential returns per unit of risk. NetApp Inc is currently generating about 0.13 per unit of volatility. If you would invest  10,550  in NetApp Inc on July 4, 2025 and sell it today you would earn a total of  1,300  from holding NetApp Inc or generate 12.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Nextnav Acquisition Corp  vs.  NetApp Inc

Nextnav Acquisition Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Nextnav Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

NetApp Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in NetApp Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, NetApp may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Nextnav Acquisition and NetApp

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

The idea behind Nextnav Acquisition Corp and NetApp Inc 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.