Correlation Between Intuitive Machines and GrainCorp
Can any of the company-specific risk be diversified away by investing in both Intuitive Machines and GrainCorp 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 GrainCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Machines and GrainCorp Limited, you can compare the effects of market volatilities on Intuitive Machines and GrainCorp 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 GrainCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and GrainCorp.
Diversification Opportunities for Intuitive Machines and GrainCorp
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intuitive and GrainCorp is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and GrainCorp Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrainCorp Limited 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 GrainCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrainCorp Limited has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and GrainCorp go up and down completely randomly.
Pair Corralation between Intuitive Machines and GrainCorp
Given the investment horizon of 90 days Intuitive Machines is expected to generate 1.89 times more return on investment than GrainCorp. However, Intuitive Machines is 1.89 times more volatile than GrainCorp Limited. It trades about 0.17 of its potential returns per unit of risk. GrainCorp Limited is currently generating about -0.02 per unit of risk. If you would invest 425.00 in Intuitive Machines on September 21, 2024 and sell it today you would earn a total of 940.00 from holding Intuitive Machines or generate 221.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Machines vs. GrainCorp Limited
Performance |
| Timeline |
| Intuitive Machines |
| GrainCorp Limited |
Intuitive Machines and GrainCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Machines and GrainCorp
The main advantage of trading using opposite Intuitive Machines and GrainCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Machines position performs unexpectedly, GrainCorp 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 GrainCorp will offset losses from the drop in GrainCorp's long position.| Intuitive Machines vs. Novocure | Intuitive Machines vs. HubSpot | Intuitive Machines vs. DigitalOcean Holdings | Intuitive Machines vs. Appian Corp |
| GrainCorp vs. Brasilagro Adr | GrainCorp vs. Recursion Pharmaceuticals | GrainCorp vs. Intuitive Machines | GrainCorp vs. InMode |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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