Correlation Between A2Z Smart and Intuitive Machines

Can any of the company-specific risk be diversified away by investing in both A2Z Smart 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 A2Z Smart and Intuitive Machines into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between A2Z Smart Technologies and Intuitive Machines, you can compare the effects of market volatilities on A2Z Smart 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 A2Z Smart with a short position of Intuitive Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of A2Z Smart and Intuitive Machines.

Diversification Opportunities for A2Z Smart and Intuitive Machines

-0.03

Correlation Coefficient

A2Z Smart  Intuitive Machines

Good diversification

The 3 months correlation between A2Z and Intuitive is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding A2Z Smart Technologies and Intuitive Machines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Machines and A2Z Smart 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 A2Z Smart Technologies 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 A2Z Smart i.e., A2Z Smart and Intuitive Machines go up and down completely randomly.

Pair Corralation between A2Z Smart and Intuitive Machines

Allowing for the 90-day total investment horizon A2Z Smart Technologies is expected to generate 0.48 times more return on investment than Intuitive Machines. However, A2Z Smart Technologies is 2.08 times less risky than Intuitive Machines. It trades about 0.03 of its potential returns per unit of risk. Intuitive Machines is currently generating about -0.09 per unit of risk. If you would invest  700.00  in A2Z Smart Technologies on December 25, 2024 and sell it today you would earn a total of  12.00  from holding A2Z Smart Technologies or generate 1.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

A2Z Smart Technologies  vs.  Intuitive Machines

A2Z Smart Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in A2Z Smart Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, A2Z Smart may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Intuitive Machines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intuitive Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with A2Z Smart and Intuitive Machines

The main advantage of trading using opposite A2Z Smart and Intuitive Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A2Z Smart 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.

The idea behind A2Z Smart Technologies and Intuitive Machines 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.