Correlation Between Satellogic and Satellogic Warrant

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

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

Diversification Opportunities for Satellogic and Satellogic Warrant

0.62

Correlation Coefficient

Satellogic  Satellogic Warrant

Poor diversification

The 3 months correlation between Satellogic and Satellogic is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Satellogic V and Satellogic Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic Warrant 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 Satellogic Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic Warrant has no effect on the direction of Satellogic i.e., Satellogic and Satellogic Warrant go up and down completely randomly.

Pair Corralation between Satellogic and Satellogic Warrant

Given the investment horizon of 90 days Satellogic V is expected to generate 0.47 times more return on investment than Satellogic Warrant. However, Satellogic V is 2.11 times less risky than Satellogic Warrant. It trades about -0.06 of its potential returns per unit of risk. Satellogic Warrant is currently generating about -0.09 per unit of risk. If you would invest  417.00  in Satellogic V on May 26, 2025 and sell it today you would lose (66.00) from holding Satellogic V or give up 15.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Satellogic V  vs.  Satellogic Warrant

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 uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Satellogic Warrant

Risk-Adjusted Performance

Weakest

Over the last 90 days Satellogic Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Satellogic and Satellogic Warrant

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

The idea behind Satellogic V and Satellogic Warrant 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.