Correlation Between Aclarion and Satellogic Warrant

Can any of the company-specific risk be diversified away by investing in both Aclarion and Satellogic Warrant 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 Aclarion and Satellogic Warrant into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aclarion and Satellogic Warrant, you can compare the effects of market volatilities on Aclarion and Satellogic Warrant 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 Aclarion with a short position of Satellogic Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aclarion and Satellogic Warrant.

Diversification Opportunities for Aclarion and Satellogic Warrant

0.0

Correlation Coefficient

Aclarion  Satellogic Warrant

Pay attention - limited upside

The 3 months correlation between Aclarion and Satellogic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aclarion and Satellogic Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic Warrant and Aclarion 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 Aclarion are associated (or correlated) with Satellogic Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic Warrant has no effect on the direction of Aclarion i.e., Aclarion and Satellogic Warrant go up and down completely randomly.

Pair Corralation between Aclarion and Satellogic Warrant

Assuming the 90 days horizon Aclarion is expected to generate 1.67 times more return on investment than Satellogic Warrant. However, Aclarion is 1.67 times more volatile than Satellogic Warrant. It trades about 0.18 of its potential returns per unit of risk. Satellogic Warrant is currently generating about 0.13 per unit of risk. If you would invest  2.50  in Aclarion on October 22, 2024 and sell it today you would earn a total of  0.76  from holding Aclarion or generate 30.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	88.89%
Values	Daily Returns

Aclarion  vs.  Satellogic Warrant

Aclarion

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aclarion are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Aclarion showed solid returns over the last few months and may actually be approaching a breakup point.

Satellogic Warrant

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Satellogic Warrant are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Satellogic Warrant showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aclarion and Satellogic Warrant

The main advantage of trading using opposite Aclarion and Satellogic Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aclarion position performs unexpectedly, Satellogic Warrant 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 Satellogic Warrant will offset losses from the drop in Satellogic Warrant's long position.

The idea behind Aclarion and Satellogic Warrant pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.