Correlation Between 90331HPL1 and Intuitive Machines

Can any of the company-specific risk be diversified away by investing in both 90331HPL1 and Intuitive Machines 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 90331HPL1 and Intuitive Machines into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US BANK NATIONAL and Intuitive Machines, you can compare the effects of market volatilities on 90331HPL1 and Intuitive Machines 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 90331HPL1 with a short position of Intuitive Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90331HPL1 and Intuitive Machines.

Diversification Opportunities for 90331HPL1 and Intuitive Machines

-0.4

Correlation Coefficient

90331HPL1  Intuitive Machines

Very good diversification

The 3 months correlation between 90331HPL1 and Intuitive is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding US BANK NATIONAL and Intuitive Machines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Machines and 90331HPL1 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 US BANK NATIONAL are associated (or correlated) with Intuitive Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Machines has no effect on the direction of 90331HPL1 i.e., 90331HPL1 and Intuitive Machines go up and down completely randomly.

Pair Corralation between 90331HPL1 and Intuitive Machines

Assuming the 90 days trading horizon US BANK NATIONAL is expected to under-perform the Intuitive Machines. But the bond apears to be less risky and, when comparing its historical volatility, US BANK NATIONAL is 10.92 times less risky than Intuitive Machines. The bond trades about -0.11 of its potential returns per unit of risk. The Intuitive Machines is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  570.00  in Intuitive Machines on September 12, 2024 and sell it today you would earn a total of  599.00  from holding Intuitive Machines or generate 105.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	60.32%
Values	Daily Returns

US BANK NATIONAL  vs.  Intuitive Machines

US BANK NATIONAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US BANK NATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 90331HPL1 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

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 abnormal basic indicators, Intuitive Machines reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 90331HPL1 and Intuitive Machines

The main advantage of trading using opposite 90331HPL1 and Intuitive Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90331HPL1 position performs unexpectedly, Intuitive Machines 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 Intuitive Machines will offset losses from the drop in Intuitive Machines' long position.

The idea behind US BANK NATIONAL and Intuitive Machines 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.