Correlation Between Satellogic Warrant and Spirit Aerosystems

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

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

Diversification Opportunities for Satellogic Warrant and Spirit Aerosystems

-0.61

Correlation Coefficient

Satellogic Warrant  Spirit Aerosystems

Excellent diversification

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

Pair Corralation between Satellogic Warrant and Spirit Aerosystems

Assuming the 90 days horizon Satellogic Warrant is expected to under-perform the Spirit Aerosystems. In addition to that, Satellogic Warrant is 6.08 times more volatile than Spirit Aerosystems Holdings. It trades about -0.1 of its total potential returns per unit of risk. Spirit Aerosystems Holdings is currently generating about 0.15 per unit of volatility. If you would invest  3,597  in Spirit Aerosystems Holdings on May 1, 2025 and sell it today you would earn a total of  385.00  from holding Spirit Aerosystems Holdings or generate 10.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.16%
Values	Daily Returns

Satellogic Warrant  vs.  Spirit Aerosystems Holdings

Satellogic Warrant

Risk-Adjusted Performance

Very Weak

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

Spirit Aerosystems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Spirit Aerosystems Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Spirit Aerosystems may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Satellogic Warrant and Spirit Aerosystems

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

The idea behind Satellogic Warrant and Spirit Aerosystems Holdings 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.