Correlation Between Aurora Mobile and Nextnav Acquisition

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aurora Mobile and Nextnav Acquisition 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 Aurora Mobile and Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Mobile and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Aurora Mobile and Nextnav Acquisition 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 Aurora Mobile with a short position of Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Mobile and Nextnav Acquisition.

Diversification Opportunities for Aurora Mobile and Nextnav Acquisition

0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between Aurora and Nextnav is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile and Nextnav Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextnav Acquisition Corp and Aurora Mobile 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 Aurora Mobile are associated (or correlated) with Nextnav Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextnav Acquisition Corp has no effect on the direction of Aurora Mobile i.e., Aurora Mobile and Nextnav Acquisition go up and down completely randomly.

Pair Corralation between Aurora Mobile and Nextnav Acquisition

Allowing for the 90-day total investment horizon Aurora Mobile is expected to under-perform the Nextnav Acquisition. In addition to that, Aurora Mobile is 1.24 times more volatile than Nextnav Acquisition Corp. It trades about -0.08 of its total potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about 0.06 per unit of volatility. If you would invest  273.00  in Nextnav Acquisition Corp on December 1, 2023 and sell it today you would earn a total of  124.00  from holding Nextnav Acquisition Corp or generate 45.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aurora Mobile  vs.  Nextnav Acquisition Corp

 Performance 
       Timeline  
Aurora Mobile 

Risk-Adjusted Performance

7 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Aurora Mobile are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Aurora Mobile reported solid returns over the last few months and may actually be approaching a breakup point.
Nextnav Acquisition Corp 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
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 very healthy basic indicators, Nextnav Acquisition is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Aurora Mobile and Nextnav Acquisition Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aurora Mobile and Nextnav Acquisition

The main advantage of trading using opposite Aurora Mobile and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile position performs unexpectedly, Nextnav Acquisition 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 Nextnav Acquisition will offset losses from the drop in Nextnav Acquisition's long position.
The idea behind Aurora Mobile and Nextnav Acquisition Corp 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.
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Share Portfolio
Track or share privately all of your investments from the convenience of any device
AI Investment Finder
Use AI to screen and filter profitable investment opportunities