Correlation Between Intuitive Machines and Flowery Gold

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

By analyzing existing cross correlation between Intuitive Machines and Flowery Gold Mines, you can compare the effects of market volatilities on Intuitive Machines and Flowery Gold 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 Flowery Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and Flowery Gold.

Diversification Opportunities for Intuitive Machines and Flowery Gold

-0.42

Correlation Coefficient

Intuitive Machines  Flowery Gold

Very good diversification

The 3 months correlation between Intuitive and Flowery is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Flowery Gold Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flowery Gold Mines 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 Flowery Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flowery Gold Mines has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Flowery Gold go up and down completely randomly.

Pair Corralation between Intuitive Machines and Flowery Gold

If you would invest  1,040  in Intuitive Machines on September 13, 2024 and sell it today you would earn a total of  128.00  from holding Intuitive Machines or generate 12.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Intuitive Machines  vs.  Flowery Gold Mines

Intuitive Machines

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Intuitive Machines reported solid returns over the last few months and may actually be approaching a breakup point.

Flowery Gold Mines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flowery Gold Mines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Intuitive Machines and Flowery Gold

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

The idea behind Intuitive Machines and Flowery Gold Mines 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.