Correlation Between Unity Software and Nextnav Acquisition
Can any of the company-specific risk be diversified away by investing in both Unity Software 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 Unity Software and Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unity Software and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Unity Software 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 Unity Software with a short position of Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unity Software and Nextnav Acquisition.
Diversification Opportunities for Unity Software and Nextnav Acquisition
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Unity and Nextnav is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Unity Software 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 Unity Software 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 Unity Software 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 Unity Software i.e., Unity Software and Nextnav Acquisition go up and down completely randomly.
Pair Corralation between Unity Software and Nextnav Acquisition
Taking into account the 90-day investment horizon Unity Software is expected to generate 1.29 times more return on investment than Nextnav Acquisition. However, Unity Software is 1.29 times more volatile than Nextnav Acquisition Corp. It trades about 0.01 of its potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about -0.13 per unit of risk. If you would invest 3,983 in Unity Software on August 25, 2025 and sell it today you would lose (106.00) from holding Unity Software or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unity Software vs. Nextnav Acquisition Corp
Performance |
| Timeline |
| Unity Software |
| Nextnav Acquisition Corp |
Unity Software and Nextnav Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unity Software and Nextnav Acquisition
The main advantage of trading using opposite Unity Software and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unity Software 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.| Unity Software vs. Shopify | Unity Software vs. Uber Technologies | Unity Software vs. Applovin Corp | Unity Software vs. Micron Technology |
| Nextnav Acquisition vs. DouYu International Holdings | Nextnav Acquisition vs. Lionsgate Studios Holding | Nextnav Acquisition vs. Yelp Inc | Nextnav Acquisition vs. Opera |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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