Correlation Between Sidus Space and Intuitive Machines

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

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

Diversification Opportunities for Sidus Space and Intuitive Machines

0.67

Correlation Coefficient

Sidus Space  Intuitive Machines

Poor diversification

The 3 months correlation between Sidus and Intuitive is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sidus Space and Intuitive Machines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Machines and Sidus Space 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 Sidus Space are associated (or correlated) with Intuitive Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Machines has no effect on the direction of Sidus Space i.e., Sidus Space and Intuitive Machines go up and down completely randomly.

Pair Corralation between Sidus Space and Intuitive Machines

Given the investment horizon of 90 days Sidus Space is expected to under-perform the Intuitive Machines. But the stock apears to be less risky and, when comparing its historical volatility, Sidus Space is 1.16 times less risky than Intuitive Machines. The stock trades about -0.21 of its potential returns per unit of risk. The Intuitive Machines is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  1,894  in Intuitive Machines on December 29, 2024 and sell it today you would lose (1,087) from holding Intuitive Machines or give up 57.39% of portfolio value over 90 days.

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

Sidus Space  vs.  Intuitive Machines

Sidus Space

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sidus Space has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Intuitive Machines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intuitive Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal 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 Sidus Space and Intuitive Machines

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

The idea behind Sidus Space and Intuitive Machines 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.