Correlation Between Satellogic and Boeing
Can any of the company-specific risk be diversified away by investing in both Satellogic and Boeing 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 Satellogic and Boeing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Satellogic V and The Boeing, you can compare the effects of market volatilities on Satellogic and Boeing 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 Satellogic with a short position of Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satellogic and Boeing.
Diversification Opportunities for Satellogic and Boeing
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Satellogic and Boeing is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Satellogic V and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing and Satellogic 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 Satellogic V are associated (or correlated) with Boeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boeing has no effect on the direction of Satellogic i.e., Satellogic and Boeing go up and down completely randomly.
Pair Corralation between Satellogic and Boeing
Given the investment horizon of 90 days Satellogic V is expected to generate 3.28 times more return on investment than Boeing. However, Satellogic is 3.28 times more volatile than The Boeing. It trades about 0.28 of its potential returns per unit of risk. The Boeing is currently generating about -0.01 per unit of risk. If you would invest 97.00 in Satellogic V on August 31, 2024 and sell it today you would earn a total of 49.00 from holding Satellogic V or generate 50.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satellogic V vs. The Boeing
Performance |
| Timeline |
| Satellogic V |
| Boeing |
Satellogic and Boeing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satellogic and Boeing
The main advantage of trading using opposite Satellogic and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satellogic position performs unexpectedly, Boeing 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 Boeing will offset losses from the drop in Boeing's long position.| Satellogic vs. Bioceres Crop Solutions | Satellogic vs. Blacksky Technology | Satellogic vs. Sky Harbour Group | Satellogic vs. Redwire Corp |
| Boeing vs. Raytheon Technologies Corp | Boeing vs. Northrop Grumman | Boeing vs. General Dynamics | Boeing vs. L3Harris Technologies |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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