Correlation Between NextNav Warrant and Where Food

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

By analyzing existing cross correlation between NextNav Warrant and Where Food Comes, you can compare the effects of market volatilities on NextNav Warrant and Where Food 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 Where Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextNav Warrant and Where Food.

Diversification Opportunities for NextNav Warrant and Where Food

0.49

Correlation Coefficient

NextNav Warrant  Where Food

Very weak diversification

The 3 months correlation between NextNav and Where is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NextNav Warrant and Where Food Comes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Where Food Comes 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 Where Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Where Food Comes has no effect on the direction of NextNav Warrant i.e., NextNav Warrant and Where Food go up and down completely randomly.

Pair Corralation between NextNav Warrant and Where Food

Assuming the 90 days horizon NextNav Warrant is expected to under-perform the Where Food. In addition to that, NextNav Warrant is 2.89 times more volatile than Where Food Comes. It trades about -0.02 of its total potential returns per unit of risk. Where Food Comes is currently generating about -0.05 per unit of volatility. If you would invest  1,237  in Where Food Comes on December 29, 2024 and sell it today you would lose (133.00) from holding Where Food Comes or give up 10.75% of portfolio value over 90 days.

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

NextNav Warrant  vs.  Where Food Comes

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.

Where Food Comes

Risk-Adjusted Performance

Very Weak

Over the last 90 days Where Food Comes has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with NextNav Warrant and Where Food

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

The idea behind NextNav Warrant and Where Food Comes 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.