Correlation Between Nextnav Acquisition and Intrusion

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

Diversification Opportunities for Nextnav Acquisition and Intrusion

-0.39

Correlation Coefficient

Nextnav Acquisition  Intrusion

Very good diversification

The 3 months correlation between Nextnav and Intrusion is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Intrusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrusion 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 Intrusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrusion has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Intrusion go up and down completely randomly.

Pair Corralation between Nextnav Acquisition and Intrusion

Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to under-perform the Intrusion. But the stock apears to be less risky and, when comparing its historical volatility, Nextnav Acquisition Corp is 12.13 times less risky than Intrusion. The stock trades about -0.14 of its potential returns per unit of risk. The Intrusion is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  56.00  in Intrusion on November 28, 2024 and sell it today you would earn a total of  62.00  from holding Intrusion or generate 110.71% 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.  Intrusion

Nextnav Acquisition Corp

Risk-Adjusted Performance

Very Weak

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 March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Intrusion

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intrusion are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Intrusion showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nextnav Acquisition and Intrusion

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

The idea behind Nextnav Acquisition Corp and Intrusion 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..