Correlation Between Zepp Health and Satellogic

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

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

Diversification Opportunities for Zepp Health and Satellogic

0.8

Correlation Coefficient

Zepp Health  Satellogic

Very poor diversification

The 3 months correlation between Zepp and Satellogic is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zepp Health Corp and Satellogic V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Satellogic V and Zepp Health 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 Zepp Health Corp 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 Zepp Health i.e., Zepp Health and Satellogic go up and down completely randomly.

Pair Corralation between Zepp Health and Satellogic

Given the investment horizon of 90 days Zepp Health Corp is expected to generate 1.14 times more return on investment than Satellogic. However, Zepp Health is 1.14 times more volatile than Satellogic V. It trades about -0.05 of its potential returns per unit of risk. Satellogic V is currently generating about -0.2 per unit of risk. If you would invest  3,929  in Zepp Health Corp on August 24, 2025 and sell it today you would lose (1,259) from holding Zepp Health Corp or give up 32.04% of portfolio value over 90 days.

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

Zepp Health Corp  vs.  Satellogic V

Zepp Health Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Zepp Health Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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.

Pair Trading with Zepp Health and Satellogic

The main advantage of trading using opposite Zepp Health and Satellogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zepp Health 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 Zepp Health Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.