Correlation Between Opera and Nextnav Acquisition

Can any of the company-specific risk be diversified away by investing in both Opera 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 Opera and Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Opera and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Opera 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 Opera with a short position of Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opera and Nextnav Acquisition.

Diversification Opportunities for Opera and Nextnav Acquisition

0.51

Correlation Coefficient

Opera  Nextnav Acquisition

Very weak diversification

The 3 months correlation between Opera and Nextnav is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Opera 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 Opera 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 Opera 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 Opera i.e., Opera and Nextnav Acquisition go up and down completely randomly.

Pair Corralation between Opera and Nextnav Acquisition

Given the investment horizon of 90 days Opera is expected to generate 1.02 times more return on investment than Nextnav Acquisition. However, Opera is 1.02 times more volatile than Nextnav Acquisition Corp. It trades about -0.02 of its potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about -0.05 per unit of risk. If you would invest  1,695  in Opera on July 28, 2025 and sell it today you would lose (136.00) from holding Opera or give up 8.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Opera  vs.  Nextnav Acquisition Corp

Opera

Risk-Adjusted Performance

Weakest

Over the last 90 days Opera has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Opera is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nextnav Acquisition Corp

Risk-Adjusted Performance

Weakest

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 latest uncertain performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Opera and Nextnav Acquisition

The main advantage of trading using opposite Opera and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opera 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 Opera 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.