Correlation Between Digimarc and Satellogic

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

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

Diversification Opportunities for Digimarc and Satellogic

0.66

Correlation Coefficient

Digimarc  Satellogic

Poor diversification

The 3 months correlation between Digimarc and Satellogic is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Digimarc and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and Digimarc 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 Digimarc 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 Digimarc i.e., Digimarc and Satellogic go up and down completely randomly.

Pair Corralation between Digimarc and Satellogic

Given the investment horizon of 90 days Digimarc is expected to generate 2.83 times less return on investment than Satellogic. But when comparing it to its historical volatility, Digimarc is 1.2 times less risky than Satellogic. It trades about 0.14 of its potential returns per unit of risk. Satellogic V is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  139.00  in Satellogic V on September 18, 2025 and sell it today you would earn a total of  58.00  from holding Satellogic V or generate 41.73% return on investment over 90 days.

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

Digimarc  vs.  Satellogic V

Digimarc

Risk-Adjusted Performance

Weakest

Over the last 90 days Digimarc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Digimarc and Satellogic

The main advantage of trading using opposite Digimarc and Satellogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digimarc 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 Digimarc 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.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.