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 |
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
Performance |
Timeline |
Intuitive Machines |
TGI Solar Power |
Intuitive Machines and TGI Solar Volatility Contrast
Predicted Return Density |
Returns |
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.Intuitive Machines vs. Redwire Corp | Intuitive Machines vs. Sidus Space | Intuitive Machines vs. Rocket Lab USA | Intuitive Machines vs. Momentus |
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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.
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