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

0.82

Correlation Coefficient

Intuitive Machines  Rumble

Very poor diversification

The 3 months correlation between Intuitive and Rumble is 0.82. 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 generate 2.54 times less return on investment than Rumble. But when comparing it to its historical volatility, Intuitive Machines is 1.75 times less risky than Rumble. It trades about 0.05 of its potential returns per unit of risk. Rumble Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  734.00  in Rumble Inc on December 4, 2024 and sell it today you would earn a total of  117.00  from holding Rumble Inc or generate 15.94% return on investment over 90 days.

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

Intuitive Machines  vs.  Rumble Inc

Intuitive Machines

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 3 (%) 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.

Rumble Inc

Risk-Adjusted Performance

Modest

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

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..