Correlation Between Fair Isaac and Nextnav Acquisition

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

Diversification Opportunities for Fair Isaac and Nextnav Acquisition

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Fair and Nextnav is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fair Isaac 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 Fair Isaac 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 Fair Isaac 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 Fair Isaac i.e., Fair Isaac and Nextnav Acquisition go up and down completely randomly.

Pair Corralation between Fair Isaac and Nextnav Acquisition

Given the investment horizon of 90 days Fair Isaac is expected to generate 0.92 times more return on investment than Nextnav Acquisition. However, Fair Isaac is 1.08 times less risky than Nextnav Acquisition. It trades about 0.1 of its potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about -0.08 per unit of risk. If you would invest  150,488  in Fair Isaac on September 2, 2025 and sell it today you would earn a total of  30,095  from holding Fair Isaac or generate 20.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Fair Isaac  vs.  Nextnav Acquisition Corp

 Performance 
       Timeline  
Fair Isaac 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fair Isaac are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Fair Isaac displayed solid returns over the last few months and may actually be approaching a breakup point.
Nextnav Acquisition Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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 fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Fair Isaac and Nextnav Acquisition Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fair Isaac and Nextnav Acquisition

The main advantage of trading using opposite Fair Isaac and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Isaac 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 Fair Isaac 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.
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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