Correlation Between Intuitive Machines and Salvatore Ferragamo

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

By analyzing existing cross correlation between Intuitive Machines and Salvatore Ferragamo SpA, you can compare the effects of market volatilities on Intuitive Machines and Salvatore Ferragamo 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 Salvatore Ferragamo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and Salvatore Ferragamo.

Diversification Opportunities for Intuitive Machines and Salvatore Ferragamo

-0.75

Correlation Coefficient

Intuitive Machines  Salvatore Ferragamo

Pay attention - limited upside

The 3 months correlation between Intuitive and Salvatore is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Salvatore Ferragamo SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salvatore Ferragamo SpA 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 Salvatore Ferragamo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salvatore Ferragamo SpA has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Salvatore Ferragamo go up and down completely randomly.

Pair Corralation between Intuitive Machines and Salvatore Ferragamo

Given the investment horizon of 90 days Intuitive Machines is expected to generate 2.09 times more return on investment than Salvatore Ferragamo. However, Intuitive Machines is 2.09 times more volatile than Salvatore Ferragamo SpA. It trades about 0.15 of its potential returns per unit of risk. Salvatore Ferragamo SpA is currently generating about 0.02 per unit of risk. If you would invest  613.00  in Intuitive Machines on September 13, 2024 and sell it today you would earn a total of  555.00  from holding Intuitive Machines or generate 90.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Intuitive Machines  vs.  Salvatore Ferragamo SpA

Intuitive Machines

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 12 (%) 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.

Salvatore Ferragamo SpA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Salvatore Ferragamo SpA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Salvatore Ferragamo is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intuitive Machines and Salvatore Ferragamo

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

The idea behind Intuitive Machines and Salvatore Ferragamo SpA 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.