Correlation Between Stratim Cloud and Satellogic Warrant

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

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

Diversification Opportunities for Stratim Cloud and Satellogic Warrant

0.0

Correlation Coefficient

Stratim Cloud  Satellogic Warrant

Pay attention - limited upside

The 3 months correlation between Stratim and Satellogic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stratim Cloud Acquisition and Satellogic Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic Warrant and Stratim Cloud 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 Stratim Cloud Acquisition are associated (or correlated) with Satellogic Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic Warrant has no effect on the direction of Stratim Cloud i.e., Stratim Cloud and Satellogic Warrant go up and down completely randomly.

Pair Corralation between Stratim Cloud and Satellogic Warrant

If you would invest  45.00  in Satellogic Warrant on December 30, 2024 and sell it today you would earn a total of  5.00  from holding Satellogic Warrant or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Stratim Cloud Acquisition  vs.  Satellogic Warrant

Stratim Cloud Acquisition

Risk-Adjusted Performance

Very Weak

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

Satellogic Warrant

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Satellogic Warrant are ranked lower than 6 (%) 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.

Pair Trading with Stratim Cloud and Satellogic Warrant

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

The idea behind Stratim Cloud Acquisition and Satellogic Warrant 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.