Correlation Between Sadot and Interactive Strength

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

By analyzing existing cross correlation between Sadot Group and Interactive Strength Common, you can compare the effects of market volatilities on Sadot and Interactive Strength 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 Sadot with a short position of Interactive Strength. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sadot and Interactive Strength.

Diversification Opportunities for Sadot and Interactive Strength

-0.17

Correlation Coefficient

Sadot  Interactive Strength

Good diversification

The 3 months correlation between Sadot and Interactive is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sadot Group and Interactive Strength Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Strength and Sadot 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 Sadot Group are associated (or correlated) with Interactive Strength. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Strength has no effect on the direction of Sadot i.e., Sadot and Interactive Strength go up and down completely randomly.

Pair Corralation between Sadot and Interactive Strength

Given the investment horizon of 90 days Sadot Group is expected to under-perform the Interactive Strength. But the stock apears to be less risky and, when comparing its historical volatility, Sadot Group is 1.11 times less risky than Interactive Strength. The stock trades about -0.06 of its potential returns per unit of risk. The Interactive Strength Common is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  629.00  in Interactive Strength Common on May 3, 2025 and sell it today you would lose (196.00) from holding Interactive Strength Common or give up 31.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Sadot Group  vs.  Interactive Strength Common

Sadot Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sadot Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Interactive Strength

Risk-Adjusted Performance

Very Weak

Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest abnormal performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Sadot and Interactive Strength

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

The idea behind Sadot Group and Interactive Strength Common 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.