Correlation Between Intuitive Machines and TGI Solar

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

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

Diversification Opportunities for Intuitive Machines and TGI Solar

0.29

Correlation Coefficient

Intuitive Machines  TGI Solar

Modest diversification

The 3 months correlation between Intuitive and TGI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and TGI Solar Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGI Solar Power 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 TGI Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGI Solar Power has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and TGI Solar go up and down completely randomly.

Pair Corralation between Intuitive Machines and TGI Solar

Given the investment horizon of 90 days Intuitive Machines is expected to under-perform the TGI Solar. But the stock apears to be less risky and, when comparing its historical volatility, Intuitive Machines is 1.74 times less risky than TGI Solar. The stock trades about -0.08 of its potential returns per unit of risk. The TGI Solar Power is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  0.08  in TGI Solar Power on December 27, 2024 and sell it today you would earn a total of  0.03  from holding TGI Solar Power or generate 37.5% 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.  TGI Solar Power

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.

TGI Solar Power

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TGI Solar Power are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, TGI Solar reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuitive Machines and TGI Solar

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

The idea behind Intuitive Machines and TGI Solar Power 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.

Check out your portfolio center.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.