Correlation Between Intuitive Machines and Konica Minolta

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

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

Diversification Opportunities for Intuitive Machines and Konica Minolta

0.64

Correlation Coefficient

Intuitive Machines  Konica Minolta

Poor diversification

The 3 months correlation between Intuitive and Konica is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta 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 Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Konica Minolta go up and down completely randomly.

Pair Corralation between Intuitive Machines and Konica Minolta

Given the investment horizon of 90 days Intuitive Machines is expected to generate 1.49 times more return on investment than Konica Minolta. However, Intuitive Machines is 1.49 times more volatile than Konica Minolta. It trades about 0.21 of its potential returns per unit of risk. Konica Minolta is currently generating about 0.1 per unit of risk. If you would invest  801.00  in Intuitive Machines on October 20, 2024 and sell it today you would earn a total of  1,050  from holding Intuitive Machines or generate 131.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Intuitive Machines  vs.  Konica Minolta

Intuitive Machines

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 16 (%) 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.

Konica Minolta

Risk-Adjusted Performance

7 of 100

OK

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

Pair Trading with Intuitive Machines and Konica Minolta

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

The idea behind Intuitive Machines and Konica Minolta 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.