Correlation Between Intuitive Machines and SMA Solar
Can any of the company-specific risk be diversified away by investing in both Intuitive Machines and SMA Solar 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 SMA Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Machines and SMA Solar Technology, you can compare the effects of market volatilities on Intuitive Machines and SMA Solar 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 SMA Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and SMA Solar.
Diversification Opportunities for Intuitive Machines and SMA Solar
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intuitive and SMA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and SMA Solar Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMA Solar Technology 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 SMA Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMA Solar Technology has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and SMA Solar go up and down completely randomly.
Pair Corralation between Intuitive Machines and SMA Solar
Given the investment horizon of 90 days Intuitive Machines is expected to generate 2.18 times more return on investment than SMA Solar. However, Intuitive Machines is 2.18 times more volatile than SMA Solar Technology. It trades about 0.32 of its potential returns per unit of risk. SMA Solar Technology is currently generating about -0.22 per unit of risk. If you would invest 807.00 in Intuitive Machines on August 24, 2024 and sell it today you would earn a total of 593.00 from holding Intuitive Machines or generate 73.48% 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. SMA Solar Technology
Performance |
| Timeline |
| Intuitive Machines |
| SMA Solar Technology |
Intuitive Machines and SMA Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Machines and SMA Solar
The main advantage of trading using opposite Intuitive Machines and SMA Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Machines position performs unexpectedly, SMA Solar 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 SMA Solar will offset losses from the drop in SMA Solar's long position.| Intuitive Machines vs. Redwire Corp | Intuitive Machines vs. Sidus Space | Intuitive Machines vs. Rocket Lab USA | Intuitive Machines vs. Momentus |
| SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Sunrun Inc | SMA Solar vs. SMA Solar Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |