Correlation Between Nextnav Acquisition and Sunoco
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By analyzing existing cross correlation between Nextnav Acquisition Corp and Sunoco LP 6, you can compare the effects of market volatilities on Nextnav Acquisition and Sunoco 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 Sunoco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextnav Acquisition and Sunoco.
Diversification Opportunities for Nextnav Acquisition and Sunoco
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nextnav and Sunoco is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nextnav Acquisition Corp and Sunoco LP 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunoco LP 6 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 Sunoco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunoco LP 6 has no effect on the direction of Nextnav Acquisition i.e., Nextnav Acquisition and Sunoco go up and down completely randomly.
Pair Corralation between Nextnav Acquisition and Sunoco
Allowing for the 90-day total investment horizon Nextnav Acquisition Corp is expected to generate 10.4 times more return on investment than Sunoco. However, Nextnav Acquisition is 10.4 times more volatile than Sunoco LP 6. It trades about 0.34 of its potential returns per unit of risk. Sunoco LP 6 is currently generating about 0.04 per unit of risk. If you would invest 757.00 in Nextnav Acquisition Corp on September 5, 2024 and sell it today you would earn a total of 877.00 from holding Nextnav Acquisition Corp or generate 115.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.31% |
Values | Daily Returns |
Nextnav Acquisition Corp vs. Sunoco LP 6
Performance |
Timeline |
Nextnav Acquisition Corp |
Sunoco LP 6 |
Nextnav Acquisition and Sunoco Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nextnav Acquisition and Sunoco
The main advantage of trading using opposite Nextnav Acquisition and Sunoco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextnav Acquisition position performs unexpectedly, Sunoco 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 Sunoco will offset losses from the drop in Sunoco'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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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