Correlation Between Intuitive Machines and BioMark Diagnostics
Can any of the company-specific risk be diversified away by investing in both Intuitive Machines and BioMark Diagnostics 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 Intuitive Machines and BioMark Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Machines and BioMark Diagnostics, you can compare the effects of market volatilities on Intuitive Machines and BioMark Diagnostics 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 Intuitive Machines with a short position of BioMark Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and BioMark Diagnostics.
Diversification Opportunities for Intuitive Machines and BioMark Diagnostics
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intuitive and BioMark is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and BioMark Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioMark Diagnostics and Intuitive Machines 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 Intuitive Machines are associated (or correlated) with BioMark Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioMark Diagnostics has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and BioMark Diagnostics go up and down completely randomly.
Pair Corralation between Intuitive Machines and BioMark Diagnostics
Given the investment horizon of 90 days Intuitive Machines is expected to generate 4.76 times more return on investment than BioMark Diagnostics. However, Intuitive Machines is 4.76 times more volatile than BioMark Diagnostics. It trades about 0.07 of its potential returns per unit of risk. BioMark Diagnostics is currently generating about 0.01 per unit of risk. If you would invest 1,100 in Intuitive Machines on September 12, 2024 and sell it today you would earn a total of 66.00 from holding Intuitive Machines or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intuitive Machines vs. BioMark Diagnostics
Performance |
| Timeline |
| Intuitive Machines |
| BioMark Diagnostics |
Intuitive Machines and BioMark Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Machines and BioMark Diagnostics
The main advantage of trading using opposite Intuitive Machines and BioMark Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Machines position performs unexpectedly, BioMark Diagnostics 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 BioMark Diagnostics will offset losses from the drop in BioMark Diagnostics' long position.| Intuitive Machines vs. Redwire Corp | Intuitive Machines vs. Sidus Space | Intuitive Machines vs. Rocket Lab USA | Intuitive Machines vs. Momentus |
| BioMark Diagnostics vs. Neuronetics | BioMark Diagnostics vs. Intelligent Bio Solutions | BioMark Diagnostics vs. Biodesix | BioMark Diagnostics vs. Precipio |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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