Correlation Between Satellogic and CPI Aerostructures
Can any of the company-specific risk be diversified away by investing in both Satellogic and CPI Aerostructures 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 CPI Aerostructures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Satellogic V and CPI Aerostructures, you can compare the effects of market volatilities on Satellogic and CPI Aerostructures 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 CPI Aerostructures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satellogic and CPI Aerostructures.
Diversification Opportunities for Satellogic and CPI Aerostructures
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Satellogic and CPI is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Satellogic V and CPI Aerostructures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPI Aerostructures 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 CPI Aerostructures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPI Aerostructures has no effect on the direction of Satellogic i.e., Satellogic and CPI Aerostructures go up and down completely randomly.
Pair Corralation between Satellogic and CPI Aerostructures
Given the investment horizon of 90 days Satellogic V is expected to under-perform the CPI Aerostructures. In addition to that, Satellogic is 1.94 times more volatile than CPI Aerostructures. It trades about -0.01 of its total potential returns per unit of risk. CPI Aerostructures is currently generating about 0.02 per unit of volatility. If you would invest 363.00 in CPI Aerostructures on August 29, 2024 and sell it today you would earn a total of 24.00 from holding CPI Aerostructures or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Satellogic V vs. CPI Aerostructures
Performance |
| Timeline |
| Satellogic V |
| CPI Aerostructures |
Satellogic and CPI Aerostructures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satellogic and CPI Aerostructures
The main advantage of trading using opposite Satellogic and CPI Aerostructures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satellogic position performs unexpectedly, CPI Aerostructures 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 CPI Aerostructures will offset losses from the drop in CPI Aerostructures' long position.| Satellogic vs. Bioceres Crop Solutions | Satellogic vs. Blacksky Technology | Satellogic vs. Sky Harbour Group | Satellogic vs. Redwire Corp |
| CPI Aerostructures vs. ABIVAX Socit Anonyme | CPI Aerostructures vs. Morningstar Unconstrained Allocation | CPI Aerostructures vs. SPACE | CPI Aerostructures vs. Knife River |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |