Correlation Between Satellogic Warrant and IONQ

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

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

Diversification Opportunities for Satellogic Warrant and IONQ

-0.07

Correlation Coefficient

Satellogic Warrant  IONQ

Good diversification

The 3 months correlation between Satellogic and IONQ is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Satellogic Warrant and IONQ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IONQ Inc and Satellogic Warrant 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 Satellogic Warrant are associated (or correlated) with IONQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IONQ Inc has no effect on the direction of Satellogic Warrant i.e., Satellogic Warrant and IONQ go up and down completely randomly.

Pair Corralation between Satellogic Warrant and IONQ

Assuming the 90 days horizon Satellogic Warrant is expected to generate 20.46 times more return on investment than IONQ. However, Satellogic Warrant is 20.46 times more volatile than IONQ Inc. It trades about 0.14 of its potential returns per unit of risk. IONQ Inc is currently generating about 0.08 per unit of risk. If you would invest  21.00  in Satellogic Warrant on December 5, 2024 and sell it today you would earn a total of  18.00  from holding Satellogic Warrant or generate 85.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	58.42%
Values	Daily Returns

Satellogic Warrant  vs.  IONQ Inc

Satellogic Warrant

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Satellogic Warrant are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Satellogic Warrant showed solid returns over the last few months and may actually be approaching a breakup point.

IONQ Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days IONQ Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent 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.

Pair Trading with Satellogic Warrant and IONQ

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

The idea behind Satellogic Warrant and IONQ 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..