Correlation Between Eve Holding and Intuitive Machines
Can any of the company-specific risk be diversified away by investing in both Eve Holding 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 Eve Holding and Intuitive Machines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eve Holding and Intuitive Machines, you can compare the effects of market volatilities on Eve Holding 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 Eve Holding with a short position of Intuitive Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eve Holding and Intuitive Machines.
Diversification Opportunities for Eve Holding and Intuitive Machines
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eve and Intuitive is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Eve Holding and Intuitive Machines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Machines and Eve Holding 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 Eve Holding 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 Eve Holding i.e., Eve Holding and Intuitive Machines go up and down completely randomly.
Pair Corralation between Eve Holding and Intuitive Machines
Given the investment horizon of 90 days Eve Holding is expected to under-perform the Intuitive Machines. But the stock apears to be less risky and, when comparing its historical volatility, Eve Holding is 1.7 times less risky than Intuitive Machines. The stock trades about -0.06 of its potential returns per unit of risk. The Intuitive Machines is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 512.00 in Intuitive Machines on August 24, 2024 and sell it today you would earn a total of 888.00 from holding Intuitive Machines or generate 173.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eve Holding vs. Intuitive Machines
Performance |
| Timeline |
| Eve Holding |
| Intuitive Machines |
Eve Holding and Intuitive Machines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eve Holding and Intuitive Machines
The main advantage of trading using opposite Eve Holding and Intuitive Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eve Holding 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.| Eve Holding vs. Heico | Eve Holding vs. Mercury Systems | Eve Holding vs. AeroVironment | Eve Holding vs. Howmet Aerospace |
| Intuitive Machines vs. Redwire Corp | Intuitive Machines vs. Sidus Space | Intuitive Machines vs. Rocket Lab USA | Intuitive Machines vs. Momentus |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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