Correlation Between StandardAero, and Satellogic

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

By analyzing existing cross correlation between StandardAero, and Satellogic V, you can compare the effects of market volatilities on StandardAero, and Satellogic 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 StandardAero, with a short position of Satellogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of StandardAero, and Satellogic.

Diversification Opportunities for StandardAero, and Satellogic

-0.14

Correlation Coefficient

StandardAero,  Satellogic

Good diversification

The 3 months correlation between StandardAero, and Satellogic is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding StandardAero, and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and StandardAero, 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 StandardAero, are associated (or correlated) with Satellogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic V has no effect on the direction of StandardAero, i.e., StandardAero, and Satellogic go up and down completely randomly.

Pair Corralation between StandardAero, and Satellogic

Given the investment horizon of 90 days StandardAero, is expected to under-perform the Satellogic. But the stock apears to be less risky and, when comparing its historical volatility, StandardAero, is 4.16 times less risky than Satellogic. The stock trades about -0.02 of its potential returns per unit of risk. The Satellogic V is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  314.00  in Satellogic V on December 5, 2024 and sell it today you would earn a total of  23.00  from holding Satellogic V or generate 7.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

StandardAero,  vs.  Satellogic V

StandardAero,

Risk-Adjusted Performance

Very Weak

Over the last 90 days StandardAero, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, StandardAero, is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Satellogic V

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Satellogic V are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Satellogic disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with StandardAero, and Satellogic

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

The idea behind StandardAero, and Satellogic V 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 Commodity Directory module to find actively traded commodities issued by global exchanges.