Correlation Between Satellogic and TROOPS

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

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

Diversification Opportunities for Satellogic and TROOPS

-0.28

Correlation Coefficient

Satellogic  TROOPS

Very good diversification

The 3 months correlation between Satellogic and TROOPS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Satellogic V and TROOPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROOPS Inc 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 TROOPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROOPS Inc has no effect on the direction of Satellogic i.e., Satellogic and TROOPS go up and down completely randomly.

Pair Corralation between Satellogic and TROOPS

Given the investment horizon of 90 days Satellogic V is expected to under-perform the TROOPS. In addition to that, Satellogic is 1.23 times more volatile than TROOPS Inc. It trades about -0.2 of its total potential returns per unit of risk. TROOPS Inc is currently generating about 0.03 per unit of volatility. If you would invest  116.00  in TROOPS Inc on August 24, 2025 and sell it today you would earn a total of  1.00  from holding TROOPS Inc or generate 0.86% return on investment over 90 days.

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

Satellogic V  vs.  TROOPS Inc

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

TROOPS Inc

Risk-Adjusted Performance

Soft

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

Pair Trading with Satellogic and TROOPS

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

The idea behind Satellogic V and TROOPS Inc 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.