Correlation Between Satellogic and Methode Electronics

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

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

Diversification Opportunities for Satellogic and Methode Electronics

0.59

Correlation Coefficient

Satellogic  Methode Electronics

Very weak diversification

The 3 months correlation between Satellogic and Methode is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Satellogic V and Methode Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Methode Electronics and Satellogic 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 Satellogic V are associated (or correlated) with Methode Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Methode Electronics has no effect on the direction of Satellogic i.e., Satellogic and Methode Electronics go up and down completely randomly.

Pair Corralation between Satellogic and Methode Electronics

Given the investment horizon of 90 days Satellogic V is expected to under-perform the Methode Electronics. In addition to that, Satellogic is 2.1 times more volatile than Methode Electronics. It trades about -0.15 of its total potential returns per unit of risk. Methode Electronics is currently generating about 0.1 per unit of volatility. If you would invest  697.00  in Methode Electronics on September 4, 2025 and sell it today you would earn a total of  133.00  from holding Methode Electronics or generate 19.08% return on investment over 90 days.

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

Satellogic V  vs.  Methode Electronics

Satellogic V

Risk-Adjusted Performance

Weakest

Over the last 90 days Satellogic V has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Methode Electronics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Methode Electronics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile technical and fundamental indicators, Methode Electronics demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Satellogic and Methode Electronics

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

The idea behind Satellogic V and Methode Electronics 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.