Correlation Between Satellogic Warrant and SAITW Old

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

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

Diversification Opportunities for Satellogic Warrant and SAITW Old

-0.48

Correlation Coefficient

Satellogic Warrant  SAITW Old

Very good diversification

The 3 months correlation between Satellogic and SAITW is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Satellogic Warrant and SAITW Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAITW Old 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 SAITW Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAITW Old has no effect on the direction of Satellogic Warrant i.e., Satellogic Warrant and SAITW Old go up and down completely randomly.

Pair Corralation between Satellogic Warrant and SAITW Old

If you would invest  4.00  in Satellogic Warrant on October 25, 2024 and sell it today you would earn a total of  36.00  from holding Satellogic Warrant or generate 900.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Satellogic Warrant  vs.  SAITW Old

Satellogic Warrant

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Satellogic Warrant are ranked lower than 24 (%) 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.

SAITW Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SAITW Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, SAITW Old is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Satellogic Warrant and SAITW Old

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

The idea behind Satellogic Warrant and SAITW Old 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..