Correlation Between Intuitive Machines and Lever Global

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

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

Diversification Opportunities for Intuitive Machines and Lever Global

0.89

Correlation Coefficient

Intuitive Machines  Lever Global

Very poor diversification

The 3 months correlation between Intuitive and Lever is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Lever Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lever Global 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 Lever Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lever Global has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Lever Global go up and down completely randomly.

Pair Corralation between Intuitive Machines and Lever Global

Given the investment horizon of 90 days Intuitive Machines is expected to generate 1.04 times less return on investment than Lever Global. In addition to that, Intuitive Machines is 1.29 times more volatile than Lever Global. It trades about 0.11 of its total potential returns per unit of risk. Lever Global is currently generating about 0.15 per unit of volatility. If you would invest  269.00  in Lever Global on September 21, 2024 and sell it today you would earn a total of  42.00  from holding Lever Global or generate 15.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.45%
Values	Daily Returns

Intuitive Machines  vs.  Lever Global

Intuitive Machines

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 10 (%) 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.

Lever Global

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lever Global are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Lever Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuitive Machines and Lever Global

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

The idea behind Intuitive Machines and Lever Global 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.