Correlation Between Nauticus Robotics and Satellogic

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

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

Diversification Opportunities for Nauticus Robotics and Satellogic

-0.51

Correlation Coefficient

Nauticus Robotics  Satellogic

Excellent diversification

The 3 months correlation between Nauticus and Satellogic is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Nauticus Robotics and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and Nauticus Robotics 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 Nauticus Robotics are associated (or correlated) with Satellogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic V has no effect on the direction of Nauticus Robotics i.e., Nauticus Robotics and Satellogic go up and down completely randomly.

Pair Corralation between Nauticus Robotics and Satellogic

Given the investment horizon of 90 days Nauticus Robotics is expected to under-perform the Satellogic. But the stock apears to be less risky and, when comparing its historical volatility, Nauticus Robotics is 1.57 times less risky than Satellogic. The stock trades about -0.09 of its potential returns per unit of risk. The Satellogic V is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  109.00  in Satellogic V on September 18, 2024 and sell it today you would earn a total of  293.00  from holding Satellogic V or generate 268.81% return on investment over 90 days.

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

Nauticus Robotics  vs.  Satellogic V

Nauticus Robotics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nauticus Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Satellogic V

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Satellogic V are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Satellogic disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nauticus Robotics and Satellogic

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

The idea behind Nauticus Robotics and Satellogic V 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.