Correlation Between Plaza Retail and Nextnav Acquisition
Can any of the company-specific risk be diversified away by investing in both Plaza Retail 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 Plaza Retail and Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plaza Retail REIT and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Plaza Retail 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 Plaza Retail with a short position of Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and Nextnav Acquisition.
Diversification Opportunities for Plaza Retail and Nextnav Acquisition
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Plaza and Nextnav is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT 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 Plaza Retail 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 Plaza Retail REIT 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 Plaza Retail i.e., Plaza Retail and Nextnav Acquisition go up and down completely randomly.
Pair Corralation between Plaza Retail and Nextnav Acquisition
Assuming the 90 days horizon Plaza Retail is expected to generate 31.9 times less return on investment than Nextnav Acquisition. But when comparing it to its historical volatility, Plaza Retail REIT is 3.34 times less risky than Nextnav Acquisition. It trades about 0.03 of its potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,264 in Nextnav Acquisition Corp on September 9, 2025 and sell it today you would earn a total of 347.00 from holding Nextnav Acquisition Corp or generate 27.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plaza Retail REIT vs. Nextnav Acquisition Corp
Performance |
| Timeline |
| Plaza Retail REIT |
| Nextnav Acquisition Corp |
Plaza Retail and Nextnav Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Retail and Nextnav Acquisition
The main advantage of trading using opposite Plaza Retail and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Retail 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.| Plaza Retail vs. Mediterranean Towers | Plaza Retail vs. LSL Property Services | Plaza Retail vs. Ayala Land | Plaza Retail vs. Jinmao Property Services |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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