Correlation Between Intuitive Machines and Terran Orbital

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

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

Diversification Opportunities for Intuitive Machines and Terran Orbital

0.0

Correlation Coefficient

Intuitive Machines  Terran Orbital

Pay attention - limited upside

The 3 months correlation between Intuitive and Terran is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Terran Orbital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terran Orbital Corp 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 Terran Orbital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terran Orbital Corp has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Terran Orbital go up and down completely randomly.

Pair Corralation between Intuitive Machines and Terran Orbital

If you would invest (100.00) in Terran Orbital Corp on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Terran Orbital Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Intuitive Machines  vs.  Terran Orbital Corp

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.

Terran Orbital Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Terran Orbital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Terran Orbital is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Intuitive Machines and Terran Orbital

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

The idea behind Intuitive Machines and Terran Orbital Corp 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.