Correlation Between Intuitive Machines and Sidus Space

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

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

Diversification Opportunities for Intuitive Machines and Sidus Space

0.27

Correlation Coefficient

Intuitive Machines  Sidus Space

Modest diversification

The 3 months correlation between Intuitive and Sidus is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Sidus Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidus Space 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 Sidus Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidus Space has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Sidus Space go up and down completely randomly.

Pair Corralation between Intuitive Machines and Sidus Space

Given the investment horizon of 90 days Intuitive Machines is expected to generate 20.88 times less return on investment than Sidus Space. But when comparing it to its historical volatility, Intuitive Machines is 4.25 times less risky than Sidus Space. It trades about 0.02 of its potential returns per unit of risk. Sidus Space is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  150.00  in Sidus Space on November 28, 2024 and sell it today you would earn a total of  70.00  from holding Sidus Space or generate 46.67% return on investment over 90 days.

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

Intuitive Machines  vs.  Sidus Space

Intuitive Machines

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Intuitive Machines may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Sidus Space

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sidus Space are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Sidus Space unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuitive Machines and Sidus Space

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

The idea behind Intuitive Machines and Sidus Space 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.