Correlation Between Intuitive Machines and ELDORADO

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

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

Diversification Opportunities for Intuitive Machines and ELDORADO

-0.34

Correlation Coefficient

Intuitive Machines  ELDORADO

Very good diversification

The 3 months correlation between Intuitive and ELDORADO is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and ELDORADO RESORTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELDORADO RESORTS 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 ELDORADO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELDORADO RESORTS INC has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and ELDORADO go up and down completely randomly.

Pair Corralation between Intuitive Machines and ELDORADO

Given the investment horizon of 90 days Intuitive Machines is expected to generate 34.76 times more return on investment than ELDORADO. However, Intuitive Machines is 34.76 times more volatile than ELDORADO RESORTS INC. It trades about 0.15 of its potential returns per unit of risk. ELDORADO RESORTS INC is currently generating about 0.1 per unit of risk. If you would invest  1,168  in Intuitive Machines on September 18, 2024 and sell it today you would earn a total of  221.00  from holding Intuitive Machines or generate 18.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.95%
Values	Daily Returns

Intuitive Machines  vs.  ELDORADO RESORTS INC

Intuitive Machines

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Intuitive Machines reported solid returns over the last few months and may actually be approaching a breakup point.

ELDORADO RESORTS INC

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ELDORADO RESORTS INC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, ELDORADO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intuitive Machines and ELDORADO

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

The idea behind Intuitive Machines and ELDORADO RESORTS 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.