Correlation Between Austal and Satellogic
Can any of the company-specific risk be diversified away by investing in both Austal and Satellogic 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 Austal and Satellogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austal Limited and Satellogic V, you can compare the effects of market volatilities on Austal and Satellogic 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 Austal with a short position of Satellogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austal and Satellogic.
Diversification Opportunities for Austal and Satellogic
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Austal and Satellogic is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Austal Limited and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and Austal 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 Austal Limited are associated (or correlated) with Satellogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic V has no effect on the direction of Austal i.e., Austal and Satellogic go up and down completely randomly.
Pair Corralation between Austal and Satellogic
Assuming the 90 days horizon Austal is expected to generate 2.05 times less return on investment than Satellogic. But when comparing it to its historical volatility, Austal Limited is 2.01 times less risky than Satellogic. It trades about 0.07 of its potential returns per unit of risk. Satellogic V is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 133.00 in Satellogic V on November 3, 2024 and sell it today you would earn a total of 147.00 from holding Satellogic V or generate 110.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Austal Limited vs. Satellogic V
Performance |
| Timeline |
| Austal Limited |
| Satellogic V |
Austal and Satellogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austal and Satellogic
The main advantage of trading using opposite Austal and Satellogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austal position performs unexpectedly, Satellogic 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 Satellogic will offset losses from the drop in Satellogic's long position.| Austal vs. 808 Renewable Energy | Austal vs. Sky Harbour Group | Austal vs. VirTra Inc | Austal vs. Firan Technology Group |
| Satellogic vs. Bioceres Crop Solutions | Satellogic vs. Blacksky Technology | Satellogic vs. Sky Harbour Group | Satellogic vs. Redwire Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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