Correlation Between Intuitive Machines and Grayscale Zcash

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

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

Diversification Opportunities for Intuitive Machines and Grayscale Zcash

0.61

Correlation Coefficient

Intuitive Machines  Grayscale Zcash

Poor diversification

The 3 months correlation between Intuitive and Grayscale is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Grayscale Zcash Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Zcash Trust 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 Grayscale Zcash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Zcash Trust has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Grayscale Zcash go up and down completely randomly.

Pair Corralation between Intuitive Machines and Grayscale Zcash

Given the investment horizon of 90 days Intuitive Machines is expected to generate 0.73 times more return on investment than Grayscale Zcash. However, Intuitive Machines is 1.37 times less risky than Grayscale Zcash. It trades about 0.15 of its potential returns per unit of risk. Grayscale Zcash Trust is currently generating about 0.08 per unit of risk. If you would invest  803.00  in Intuitive Machines on September 21, 2024 and sell it today you would earn a total of  554.00  from holding Intuitive Machines or generate 68.99% return on investment over 90 days.

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

Intuitive Machines  vs.  Grayscale Zcash Trust

Intuitive Machines

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Machines are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Intuitive Machines reported solid returns over the last few months and may actually be approaching a breakup point.

Grayscale Zcash Trust

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Grayscale Zcash Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Grayscale Zcash demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuitive Machines and Grayscale Zcash

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

The idea behind Intuitive Machines and Grayscale Zcash Trust 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..