Correlation Between Nextnav Acquisition and Rubrik,

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

Diversification Opportunities for Nextnav Acquisition and Rubrik,

0.2

Correlation Coefficient

Nextnav Acquisition  Rubrik,

Modest diversification

The 3 months correlation between Nextnav and Rubrik, is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Rubrik, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubrik, 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 Rubrik,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubrik, has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Rubrik, go up and down completely randomly.

Pair Corralation between Nextnav Acquisition and Rubrik,

Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to under-perform the Rubrik,. In addition to that, Nextnav Acquisition is 1.06 times more volatile than Rubrik,. It trades about -0.05 of its total potential returns per unit of risk. Rubrik, is currently generating about 0.01 per unit of volatility. If you would invest  6,827  in Rubrik, on December 28, 2024 and sell it today you would lose (227.00) from holding Rubrik, or give up 3.33% of portfolio value over 90 days.

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

Nextnav Acquisition Corp  vs.  Rubrik,

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

Rubrik,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rubrik, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Rubrik, is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Nextnav Acquisition and Rubrik,

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

The idea behind Nextnav Acquisition Corp and Rubrik, 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.