Correlation Between Eve Holding and Satellogic

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

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

Diversification Opportunities for Eve Holding and Satellogic

0.81

Correlation Coefficient

Eve Holding  Satellogic

Very poor diversification

The 3 months correlation between Eve and Satellogic is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Eve Holding and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and Eve Holding 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 Eve Holding 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 Eve Holding i.e., Eve Holding and Satellogic go up and down completely randomly.

Pair Corralation between Eve Holding and Satellogic

Given the investment horizon of 90 days Eve Holding is expected to generate 3.15 times less return on investment than Satellogic. But when comparing it to its historical volatility, Eve Holding is 2.36 times less risky than Satellogic. It trades about 0.2 of its potential returns per unit of risk. Satellogic V is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  105.00  in Satellogic V on September 13, 2024 and sell it today you would earn a total of  293.00  from holding Satellogic V or generate 279.05% return on investment over 90 days.

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

Eve Holding  vs.  Satellogic V

Eve Holding

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eve Holding are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent technical and fundamental indicators, Eve Holding showed solid returns over the last few months and may actually be approaching a breakup point.

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 Eve Holding and Satellogic

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

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.