Correlation Between NextNav Warrant and Audacy

Can any of the company-specific risk be diversified away by investing in both NextNav Warrant and Audacy 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 Warrant and Audacy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NextNav Warrant and Audacy Inc, you can compare the effects of market volatilities on NextNav Warrant and Audacy 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 Warrant with a short position of Audacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextNav Warrant and Audacy.

Diversification Opportunities for NextNav Warrant and Audacy

0.0

Correlation Coefficient

NextNav Warrant  Audacy

Pay attention - limited upside

The 3 months correlation between NextNav and Audacy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NextNav Warrant and Audacy Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Audacy Inc and NextNav Warrant 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 Warrant are associated (or correlated) with Audacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Audacy Inc has no effect on the direction of NextNav Warrant i.e., NextNav Warrant and Audacy go up and down completely randomly.

Pair Corralation between NextNav Warrant and Audacy

If you would invest (100.00) in Audacy Inc on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Audacy Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

NextNav Warrant  vs.  Audacy Inc

NextNav Warrant

Risk-Adjusted Performance

Very Weak

Over the last 90 days NextNav Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Audacy Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Audacy Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Audacy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with NextNav Warrant and Audacy

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

The idea behind NextNav Warrant and Audacy Inc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.