Correlation Between Nextnav Acquisition and Gorilla Technology

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nextnav Acquisition and Gorilla Technology 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 Gorilla Technology 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 Gorilla Technology Group, you can compare the effects of market volatilities on Nextnav Acquisition and Gorilla Technology 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 Gorilla Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Gorilla Technology.

Diversification Opportunities for Nextnav Acquisition and Gorilla Technology

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between Nextnav and Gorilla is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Gorilla Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gorilla Technology 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 Gorilla Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gorilla Technology has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Gorilla Technology go up and down completely randomly.

Pair Corralation between Nextnav Acquisition and Gorilla Technology

Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to under-perform the Gorilla Technology. But the stock apears to be less risky and, when comparing its historical volatility, Nextnav Acquisition Corp is 2.71 times less risky than Gorilla Technology. The stock trades about -0.16 of its potential returns per unit of risk. The Gorilla Technology Group is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  734.00  in Gorilla Technology Group on December 1, 2024 and sell it today you would earn a total of  2,294  from holding Gorilla Technology Group or generate 312.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Nextnav Acquisition Corp  vs.  Gorilla Technology Group

 Performance 
       Timeline  
Nextnav Acquisition Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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 uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Gorilla Technology 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gorilla Technology Group are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Gorilla Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Nextnav Acquisition and Gorilla Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nextnav Acquisition and Gorilla Technology

The main advantage of trading using opposite Nextnav Acquisition and Gorilla Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Gorilla Technology 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 Gorilla Technology will offset losses from the drop in Gorilla Technology's long position.
The idea behind Nextnav Acquisition Corp and Gorilla Technology Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Complementary Tools

Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Technical Analysis
Check basic technical indicators and analysis based on most latest market data