Correlation Between FTC Solar and Satellogic Warrant
Can any of the company-specific risk be diversified away by investing in both FTC Solar and Satellogic Warrant 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 FTC Solar and Satellogic Warrant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTC Solar and Satellogic Warrant, you can compare the effects of market volatilities on FTC Solar and Satellogic Warrant 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 FTC Solar with a short position of Satellogic Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTC Solar and Satellogic Warrant.
Diversification Opportunities for FTC Solar and Satellogic Warrant
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FTC and Satellogic is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding FTC Solar and Satellogic Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic Warrant and FTC Solar 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 FTC Solar are associated (or correlated) with Satellogic Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic Warrant has no effect on the direction of FTC Solar i.e., FTC Solar and Satellogic Warrant go up and down completely randomly.
Pair Corralation between FTC Solar and Satellogic Warrant
Given the investment horizon of 90 days FTC Solar is expected to under-perform the Satellogic Warrant. But the stock apears to be less risky and, when comparing its historical volatility, FTC Solar is 7.84 times less risky than Satellogic Warrant. The stock trades about -0.33 of its potential returns per unit of risk. The Satellogic Warrant is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 5.12 in Satellogic Warrant on August 23, 2024 and sell it today you would earn a total of 2.38 from holding Satellogic Warrant or generate 46.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.78% |
| Values | Daily Returns |
FTC Solar vs. Satellogic Warrant
Performance |
| Timeline |
| FTC Solar |
| Satellogic Warrant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
FTC Solar and Satellogic Warrant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTC Solar and Satellogic Warrant
The main advantage of trading using opposite FTC Solar and Satellogic Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTC Solar position performs unexpectedly, Satellogic Warrant 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 Warrant will offset losses from the drop in Satellogic Warrant's long position.| FTC Solar vs. Small Cap Core | FTC Solar vs. Freedom Holding Corp | FTC Solar vs. Gfl Environmental Holdings | FTC Solar vs. Growth Fund Of |
| Satellogic Warrant vs. Satellogic V | Satellogic Warrant vs. Revelation Biosciences | Satellogic Warrant vs. Cepton Inc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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