Correlation Between Nextnav Acquisition and Occidental
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By analyzing existing cross correlation between Nextnav Acquisition Corp and Occidental Petroleum 44, you can compare the effects of market volatilities on Nextnav Acquisition and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Occidental.
Diversification Opportunities for Nextnav Acquisition and Occidental
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nextnav and Occidental is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Occidental Petroleum 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Occidental go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Occidental
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 1.37 times more return on investment than Occidental. However, Nextnav Acquisition is 1.37 times more volatile than Occidental Petroleum 44. It trades about 0.11 of its potential returns per unit of risk. Occidental Petroleum 44 is currently generating about 0.05 per unit of risk. If you would invest 1,006 in Nextnav Acquisition Corp on October 22, 2024 and sell it today you would earn a total of 293.00 from holding Nextnav Acquisition Corp or generate 29.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 75.81% |
Values | Daily Returns |
Nextnav Acquisition Corp vs. Occidental Petroleum 44
Performance |
Timeline |
Nextnav Acquisition Corp |
Occidental Petroleum |
Nextnav Acquisition and Occidental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nextnav Acquisition and Occidental
The main advantage of trading using opposite Nextnav Acquisition and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental'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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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