Correlation Between Intuitive Machines and Rumble

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

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

Diversification Opportunities for Intuitive Machines and Rumble

0.67

Correlation Coefficient

Intuitive Machines  Rumble

Poor diversification

The 3 months correlation between Intuitive and Rumble is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Rumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rumble Inc 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 Rumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rumble Inc has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Rumble go up and down completely randomly.

Pair Corralation between Intuitive Machines and Rumble

Given the investment horizon of 90 days Intuitive Machines is expected to under-perform the Rumble. In addition to that, Intuitive Machines is 1.9 times more volatile than Rumble Inc. It trades about -0.11 of its total potential returns per unit of risk. Rumble Inc is currently generating about -0.19 per unit of volatility. If you would invest  1,384  in Rumble Inc on December 28, 2024 and sell it today you would lose (660.00) from holding Rumble Inc or give up 47.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Intuitive Machines  vs.  Rumble Inc

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.

Rumble Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rumble Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Intuitive Machines and Rumble

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

The idea behind Intuitive Machines and Rumble Inc 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..