Correlation Between Sky Harbour and Satellogic

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

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

Diversification Opportunities for Sky Harbour and Satellogic

0.62

Correlation Coefficient

Sky Harbour  Satellogic

Poor diversification

The 3 months correlation between Sky and Satellogic is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sky Harbour Group and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and Sky Harbour 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 Sky Harbour Group 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 Sky Harbour i.e., Sky Harbour and Satellogic go up and down completely randomly.

Pair Corralation between Sky Harbour and Satellogic

Given the investment horizon of 90 days Sky Harbour is expected to generate 14.1 times less return on investment than Satellogic. But when comparing it to its historical volatility, Sky Harbour Group is 3.06 times less risky than Satellogic. It trades about 0.06 of its potential returns per unit of risk. Satellogic V is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  109.00  in Satellogic V on September 18, 2024 and sell it today you would earn a total of  293.00  from holding Satellogic V or generate 268.81% return on investment over 90 days.

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

Sky Harbour Group  vs.  Satellogic V

Sky Harbour Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sky Harbour Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Sky Harbour may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Satellogic V

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Satellogic V are ranked lower than 20 (%) 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 Sky Harbour and Satellogic

The main advantage of trading using opposite Sky Harbour and Satellogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sky Harbour 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 Sky Harbour Group 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.