Correlation Between Bandwidth and Satellogic

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

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

Diversification Opportunities for Bandwidth and Satellogic

-0.03

Correlation Coefficient

Bandwidth  Satellogic

Good diversification

The 3 months correlation between Bandwidth and Satellogic is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bandwidth and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and Bandwidth 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 Bandwidth are associated (or correlated) with Satellogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Satellogic V has no effect on the direction of Bandwidth i.e., Bandwidth and Satellogic go up and down completely randomly.

Pair Corralation between Bandwidth and Satellogic

Given the investment horizon of 90 days Bandwidth is expected to generate 0.61 times more return on investment than Satellogic. However, Bandwidth is 1.65 times less risky than Satellogic. It trades about 0.03 of its potential returns per unit of risk. Satellogic V is currently generating about -0.09 per unit of risk. If you would invest  1,621  in Bandwidth on July 27, 2025 and sell it today you would earn a total of  50.00  from holding Bandwidth or generate 3.08% return on investment over 90 days.

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

Bandwidth  vs.  Satellogic V

Bandwidth

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bandwidth are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Bandwidth may actually be approaching a critical reversion point that can send shares even higher in November 2025.

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 November 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Bandwidth and Satellogic

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

The idea behind Bandwidth and Satellogic V 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.

Check out your portfolio center.

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.