Correlation Between Intuitive Machines and Vitalhub Corp

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

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

Diversification Opportunities for Intuitive Machines and Vitalhub Corp

0.16

Correlation Coefficient

Intuitive Machines  Vitalhub Corp

Average diversification

The 3 months correlation between Intuitive and Vitalhub is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Vitalhub Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitalhub Corp 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 Vitalhub Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitalhub Corp has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Vitalhub Corp go up and down completely randomly.

Pair Corralation between Intuitive Machines and Vitalhub Corp

Given the investment horizon of 90 days Intuitive Machines is expected to under-perform the Vitalhub Corp. In addition to that, Intuitive Machines is 2.01 times more volatile than Vitalhub Corp. It trades about -0.37 of its total potential returns per unit of risk. Vitalhub Corp is currently generating about -0.27 per unit of volatility. If you would invest  780.00  in Vitalhub Corp on December 4, 2024 and sell it today you would lose (118.00) from holding Vitalhub Corp or give up 15.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Intuitive Machines  vs.  Vitalhub Corp

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.

Vitalhub Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vitalhub Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's fundamental drivers remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Intuitive Machines and Vitalhub Corp

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

The idea behind Intuitive Machines and Vitalhub Corp 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.