Correlation Between Astra Space and Intuitive Machines
Can any of the company-specific risk be diversified away by investing in both Astra Space and Intuitive Machines 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 Astra Space and Intuitive Machines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Space and Intuitive Machines, you can compare the effects of market volatilities on Astra Space and Intuitive Machines 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 Astra Space with a short position of Intuitive Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Space and Intuitive Machines.
Diversification Opportunities for Astra Space and Intuitive Machines
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astra and Intuitive is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Astra Space and Intuitive Machines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Machines and Astra Space 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 Astra Space are associated (or correlated) with Intuitive Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Machines has no effect on the direction of Astra Space i.e., Astra Space and Intuitive Machines go up and down completely randomly.
Pair Corralation between Astra Space and Intuitive Machines
If you would invest 270.00 in Intuitive Machines on August 28, 2024 and sell it today you would earn a total of 280.00 from holding Intuitive Machines or generate 103.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
Astra Space vs. Intuitive Machines
Performance |
| Timeline |
| Astra Space |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Intuitive Machines |
Astra Space and Intuitive Machines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Space and Intuitive Machines
The main advantage of trading using opposite Astra Space and Intuitive Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Space position performs unexpectedly, Intuitive Machines 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 Intuitive Machines will offset losses from the drop in Intuitive Machines' long position.| Astra Space vs. Virgin Galactic Holdings | Astra Space vs. Planet Labs PBC | Astra Space vs. Eve Holding | Astra Space vs. Redwire Corp |
| Intuitive Machines vs. SEI Investments | Intuitive Machines vs. Tritent International Agriculture | Intuitive Machines vs. ChampionX | Intuitive Machines vs. Griffon |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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