Correlation Between Intuitive Machines and Guskin Gold

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

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

Diversification Opportunities for Intuitive Machines and Guskin Gold

-0.87

Correlation Coefficient

Intuitive Machines  Guskin Gold

Pay attention - limited upside

The 3 months correlation between Intuitive and Guskin is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Guskin Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guskin Gold Corp and Intuitive Machines 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 Intuitive Machines are associated (or correlated) with Guskin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guskin Gold Corp has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Guskin Gold go up and down completely randomly.

Pair Corralation between Intuitive Machines and Guskin Gold

Given the investment horizon of 90 days Intuitive Machines is expected to generate 3.95 times less return on investment than Guskin Gold. But when comparing it to its historical volatility, Intuitive Machines is 7.64 times less risky than Guskin Gold. It trades about 0.1 of its potential returns per unit of risk. Guskin Gold Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2.04  in Guskin Gold Corp on September 15, 2024 and sell it today you would lose (2.03) from holding Guskin Gold Corp or give up 99.51% of portfolio value over 90 days.

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

Intuitive Machines  vs.  Guskin Gold Corp

Intuitive Machines

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Intuitive Machines reported solid returns over the last few months and may actually be approaching a breakup point.

Guskin Gold Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guskin Gold Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile forward indicators, Guskin Gold displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuitive Machines and Guskin Gold

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

The idea behind Intuitive Machines and Guskin Gold Corp 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..