Correlation Between CPI Aerostructures and Satellogic
Can any of the company-specific risk be diversified away by investing in both CPI Aerostructures 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 CPI Aerostructures and Satellogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPI Aerostructures and Satellogic V, you can compare the effects of market volatilities on CPI Aerostructures 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 CPI Aerostructures with a short position of Satellogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPI Aerostructures and Satellogic.
Diversification Opportunities for CPI Aerostructures and Satellogic
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CPI and Satellogic is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CPI Aerostructures and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and CPI Aerostructures 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 CPI Aerostructures 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 CPI Aerostructures i.e., CPI Aerostructures and Satellogic go up and down completely randomly.
Pair Corralation between CPI Aerostructures and Satellogic
Considering the 90-day investment horizon CPI Aerostructures is expected to generate 2.03 times less return on investment than Satellogic. But when comparing it to its historical volatility, CPI Aerostructures is 2.32 times less risky than Satellogic. It trades about 0.08 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPI Aerostructures vs. Satellogic V
Performance |
| Timeline |
| CPI Aerostructures |
| Satellogic V |
CPI Aerostructures and Satellogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPI Aerostructures and Satellogic
The main advantage of trading using opposite CPI Aerostructures and Satellogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPI Aerostructures 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.| CPI Aerostructures vs. Ducommun Incorporated | CPI Aerostructures vs. SIFCO Industries | CPI Aerostructures vs. Innovative Solutions and | CPI Aerostructures vs. Air Industries 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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