Correlation Between Alabama Aircraft and Satellogic

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

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

Diversification Opportunities for Alabama Aircraft and Satellogic

-0.17

Correlation Coefficient

Alabama Aircraft  Satellogic

Good diversification

The 3 months correlation between Alabama and Satellogic is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Alabama Aircraft Industries and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and Alabama Aircraft 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 Alabama Aircraft Industries 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 Alabama Aircraft i.e., Alabama Aircraft and Satellogic go up and down completely randomly.

Pair Corralation between Alabama Aircraft and Satellogic

If you would invest  103.00  in Satellogic V on September 12, 2024 and sell it today you would earn a total of  295.00  from holding Satellogic V or generate 286.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Alabama Aircraft Industries  vs.  Satellogic V

Alabama Aircraft Ind

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alabama Aircraft Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, Alabama Aircraft is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Satellogic V

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Satellogic V are ranked lower than 21 (%) 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 Alabama Aircraft and Satellogic

The main advantage of trading using opposite Alabama Aircraft and Satellogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alabama Aircraft 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 Alabama Aircraft Industries 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.