Correlation Between Intuitive Machines and Helio
Can any of the company-specific risk be diversified away by investing in both Intuitive Machines and Helio 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 Helio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Machines and Helio, you can compare the effects of market volatilities on Intuitive Machines and Helio 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 Helio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and Helio.
Diversification Opportunities for Intuitive Machines and Helio
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intuitive and Helio is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Helio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helio 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 Helio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helio has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Helio go up and down completely randomly.
Pair Corralation between Intuitive Machines and Helio
Given the investment horizon of 90 days Intuitive Machines is expected to generate 1.35 times less return on investment than Helio. But when comparing it to its historical volatility, Intuitive Machines is 1.01 times less risky than Helio. It trades about 0.06 of its potential returns per unit of risk. Helio is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Helio on October 7, 2024 and sell it today you would earn a total of 394.00 from holding Helio or generate 394.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.29% |
| Values | Daily Returns |
Intuitive Machines vs. Helio
Performance |
| Timeline |
| Intuitive Machines |
| Helio |
Intuitive Machines and Helio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Machines and Helio
The main advantage of trading using opposite Intuitive Machines and Helio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Machines position performs unexpectedly, Helio 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 Helio will offset losses from the drop in Helio's long position.| 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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