Correlation Between Intuitive Machines and ProConcept Marketing

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

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

Diversification Opportunities for Intuitive Machines and ProConcept Marketing

-0.6

Correlation Coefficient

Intuitive Machines  ProConcept Marketing

Excellent diversification

The 3 months correlation between Intuitive and ProConcept is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and ProConcept Marketing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProConcept Marketing 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 ProConcept Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProConcept Marketing has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and ProConcept Marketing go up and down completely randomly.

Pair Corralation between Intuitive Machines and ProConcept Marketing

Given the investment horizon of 90 days Intuitive Machines is expected to under-perform the ProConcept Marketing. But the stock apears to be less risky and, when comparing its historical volatility, Intuitive Machines is 1.97 times less risky than ProConcept Marketing. The stock trades about -0.11 of its potential returns per unit of risk. The ProConcept Marketing Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  8.17  in ProConcept Marketing Group on December 28, 2024 and sell it today you would lose (0.56) from holding ProConcept Marketing Group or give up 6.85% of portfolio value over 90 days.

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

Intuitive Machines  vs.  ProConcept Marketing Group

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.

ProConcept Marketing

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ProConcept Marketing Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, ProConcept Marketing displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuitive Machines and ProConcept Marketing

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

The idea behind Intuitive Machines and ProConcept Marketing Group 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.