Correlation Between Intuitive Machines and Atomic Minerals

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

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

Diversification Opportunities for Intuitive Machines and Atomic Minerals

0.4

Correlation Coefficient

Intuitive Machines  Atomic Minerals

Very weak diversification

The 3 months correlation between Intuitive and Atomic is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Atomic Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomic Minerals and Intuitive Machines 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 Intuitive Machines are associated (or correlated) with Atomic Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomic Minerals has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Atomic Minerals go up and down completely randomly.

Pair Corralation between Intuitive Machines and Atomic Minerals

Given the investment horizon of 90 days Intuitive Machines is expected to under-perform the Atomic Minerals. But the stock apears to be less risky and, when comparing its historical volatility, Intuitive Machines is 6.84 times less risky than Atomic Minerals. The stock trades about -0.11 of its potential returns per unit of risk. The Atomic Minerals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2.00  in Atomic Minerals on December 29, 2024 and sell it today you would lose (1.61) from holding Atomic Minerals or give up 80.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Intuitive Machines  vs.  Atomic Minerals

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.

Atomic Minerals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atomic Minerals are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting primary indicators, Atomic Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuitive Machines and Atomic Minerals

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

The idea behind Intuitive Machines and Atomic Minerals 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.