Correlation Between Nextnav Acquisition and Gorilla Technology
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nextnav Acquisition Corp vs. Gorilla Technology Group
Performance |
Timeline |
Nextnav Acquisition Corp |
Gorilla Technology |
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.Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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