Correlation Between Icad and Intuitive Machines

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

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

Diversification Opportunities for Icad and Intuitive Machines

0.56

Correlation Coefficient

Icad  Intuitive Machines

Very weak diversification

The 3 months correlation between Icad and Intuitive is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding icad inc and Intuitive Machines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Machines and Icad 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 icad inc 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 Icad i.e., Icad and Intuitive Machines go up and down completely randomly.

Pair Corralation between Icad and Intuitive Machines

Given the investment horizon of 90 days Icad is expected to generate 2.16 times less return on investment than Intuitive Machines. But when comparing it to its historical volatility, icad inc is 1.29 times less risky than Intuitive Machines. It trades about 0.05 of its potential returns per unit of risk. Intuitive Machines is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  595.00  in Intuitive Machines on December 5, 2024 and sell it today you would earn a total of  752.00  from holding Intuitive Machines or generate 126.39% return on investment over 90 days.

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

icad inc  vs.  Intuitive Machines

icad inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in icad inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Icad exhibited solid returns over the last few months and may actually be approaching a breakup point.

Intuitive Machines

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Intuitive Machines reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Icad and Intuitive Machines

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

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 Anywhere module to track or share privately all of your investments from the convenience of any device.