Correlation Between Momentus and Intuitive Machines
Can any of the company-specific risk be diversified away by investing in both Momentus and Intuitive Machines 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 Momentus and Intuitive Machines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Momentus and Intuitive Machines, you can compare the effects of market volatilities on Momentus and Intuitive Machines 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 Momentus with a short position of Intuitive Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Momentus and Intuitive Machines.
Diversification Opportunities for Momentus and Intuitive Machines
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Momentus and Intuitive is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Momentus and Intuitive Machines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Machines and Momentus 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 Momentus are associated (or correlated) with Intuitive Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Machines has no effect on the direction of Momentus i.e., Momentus and Intuitive Machines go up and down completely randomly.
Pair Corralation between Momentus and Intuitive Machines
Given the investment horizon of 90 days Momentus is expected to generate 1.06 times less return on investment than Intuitive Machines. In addition to that, Momentus is 2.28 times more volatile than Intuitive Machines. It trades about 0.04 of its total potential returns per unit of risk. Intuitive Machines is currently generating about 0.1 per unit of volatility. If you would invest 603.00 in Intuitive Machines on August 27, 2024 and sell it today you would earn a total of 909.00 from holding Intuitive Machines or generate 150.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Momentus vs. Intuitive Machines
Performance |
| Timeline |
| Momentus |
| Intuitive Machines |
Momentus and Intuitive Machines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Momentus and Intuitive Machines
The main advantage of trading using opposite Momentus and Intuitive Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Momentus position performs unexpectedly, Intuitive Machines 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 Intuitive Machines will offset losses from the drop in Intuitive Machines' long position.| Momentus vs. Planet Labs PBC | Momentus vs. Rocket Lab USA | Momentus vs. Redwire Corp | Momentus vs. Virgin Galactic Holdings |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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