Correlation Between Intuitive Machines and Momentus
Can any of the company-specific risk be diversified away by investing in both Intuitive Machines and Momentus 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 Momentus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Machines and Momentus, you can compare the effects of market volatilities on Intuitive Machines and Momentus 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 Momentus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and Momentus.
Diversification Opportunities for Intuitive Machines and Momentus
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intuitive and Momentus is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Momentus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Momentus 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 Momentus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Momentus has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Momentus go up and down completely randomly.
Pair Corralation between Intuitive Machines and Momentus
Given the investment horizon of 90 days Intuitive Machines is expected to generate 1.84 times less return on investment than Momentus. But when comparing it to its historical volatility, Intuitive Machines is 3.06 times less risky than Momentus. It trades about 0.06 of its potential returns per unit of risk. Momentus is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,254 in Momentus on November 1, 2024 and sell it today you would lose (661.00) from holding Momentus or give up 52.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Machines vs. Momentus
Performance |
| Timeline |
| Intuitive Machines |
| Momentus |
Intuitive Machines and Momentus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Machines and Momentus
The main advantage of trading using opposite Intuitive Machines and Momentus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Machines position performs unexpectedly, Momentus 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 Momentus will offset losses from the drop in Momentus' long position.| Intuitive Machines vs. Redwire Corp | Intuitive Machines vs. Sidus Space | Intuitive Machines vs. Rocket Lab USA | Intuitive Machines vs. Momentus |
| Momentus vs. Planet Labs PBC | Momentus vs. Rocket Lab USA | Momentus vs. Redwire Corp | Momentus vs. Virgin Galactic Holdings |
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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