Correlation Between Intuitive Machines and GGX Gold
Can any of the company-specific risk be diversified away by investing in both Intuitive Machines and GGX Gold 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 GGX Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Machines and GGX Gold Corp, you can compare the effects of market volatilities on Intuitive Machines and GGX Gold 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 GGX Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and GGX Gold.
Diversification Opportunities for Intuitive Machines and GGX Gold
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intuitive and GGX is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and GGX Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GGX Gold Corp 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 GGX Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GGX Gold Corp has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and GGX Gold go up and down completely randomly.
Pair Corralation between Intuitive Machines and GGX Gold
Given the investment horizon of 90 days Intuitive Machines is expected to generate 0.81 times more return on investment than GGX Gold. However, Intuitive Machines is 1.24 times less risky than GGX Gold. It trades about 0.15 of its potential returns per unit of risk. GGX Gold Corp is currently generating about -0.2 per unit of risk. If you would invest 1,168 in Intuitive Machines on September 19, 2024 and sell it today you would earn a total of 221.00 from holding Intuitive Machines or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Intuitive Machines vs. GGX Gold Corp
Performance |
| Timeline |
| Intuitive Machines |
| GGX Gold Corp |
Intuitive Machines and GGX Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Machines and GGX Gold
The main advantage of trading using opposite Intuitive Machines and GGX Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Machines position performs unexpectedly, GGX Gold 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 GGX Gold will offset losses from the drop in GGX Gold's long position.| Intuitive Machines vs. Novocure | Intuitive Machines vs. HubSpot | Intuitive Machines vs. DigitalOcean Holdings | Intuitive Machines vs. Appian Corp |
| GGX Gold vs. GFG Resources | GGX Gold vs. Klondike Gold Corp | GGX Gold vs. Jaguar Mining | GGX Gold vs. Marvel Gold Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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