Correlation Between Satellogic Warrant and CPI Aerostructures
Can any of the company-specific risk be diversified away by investing in both Satellogic Warrant 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 Warrant 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 Warrant and CPI Aerostructures, you can compare the effects of market volatilities on Satellogic Warrant 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 Warrant with a short position of CPI Aerostructures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Satellogic Warrant and CPI Aerostructures.
Diversification Opportunities for Satellogic Warrant and CPI Aerostructures
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Satellogic and CPI is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Satellogic Warrant and CPI Aerostructures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPI Aerostructures and Satellogic Warrant 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 Warrant 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 Warrant i.e., Satellogic Warrant and CPI Aerostructures go up and down completely randomly.
Pair Corralation between Satellogic Warrant and CPI Aerostructures
Assuming the 90 days horizon Satellogic Warrant is expected to generate 72.19 times more return on investment than CPI Aerostructures. However, Satellogic Warrant is 72.19 times more volatile than CPI Aerostructures. It trades about 0.2 of its potential returns per unit of risk. CPI Aerostructures is currently generating about 0.08 per unit of risk. If you would invest 14.00 in Satellogic Warrant on August 26, 2024 and sell it today you would lose (6.50) from holding Satellogic Warrant or give up 46.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 49.4% |
| Values | Daily Returns |
Satellogic Warrant vs. CPI Aerostructures
Performance |
| Timeline |
| Satellogic Warrant |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| CPI Aerostructures |
Satellogic Warrant and CPI Aerostructures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Satellogic Warrant and CPI Aerostructures
The main advantage of trading using opposite Satellogic Warrant and CPI Aerostructures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Satellogic Warrant 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 Warrant vs. Plexus Corp | Satellogic Warrant vs. Benchmark Electronics | Satellogic Warrant vs. Jabil Circuit | Satellogic Warrant vs. Sanmina |
| CPI Aerostructures vs. Redwire Corp | CPI Aerostructures vs. Sidus Space | CPI Aerostructures vs. Rocket Lab USA | CPI Aerostructures 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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