Correlation Between Blacksky Technology and Microvision
Can any of the company-specific risk be diversified away by investing in both Blacksky Technology and Microvision 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 Blacksky Technology and Microvision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blacksky Technology and Microvision, you can compare the effects of market volatilities on Blacksky Technology and Microvision 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 Blacksky Technology with a short position of Microvision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blacksky Technology and Microvision.
Diversification Opportunities for Blacksky Technology and Microvision
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blacksky and Microvision is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Blacksky Technology and Microvision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvision and Blacksky Technology 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 Blacksky Technology are associated (or correlated) with Microvision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microvision has no effect on the direction of Blacksky Technology i.e., Blacksky Technology and Microvision go up and down completely randomly.
Pair Corralation between Blacksky Technology and Microvision
Given the investment horizon of 90 days Blacksky Technology is expected to generate 0.91 times more return on investment than Microvision. However, Blacksky Technology is 1.1 times less risky than Microvision. It trades about 0.01 of its potential returns per unit of risk. Microvision is currently generating about -0.01 per unit of risk. If you would invest 1,384 in Blacksky Technology on August 28, 2024 and sell it today you would lose (247.00) from holding Blacksky Technology or give up 17.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blacksky Technology vs. Microvision
Performance |
| Timeline |
| Blacksky Technology |
| Microvision |
Blacksky Technology and Microvision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blacksky Technology and Microvision
The main advantage of trading using opposite Blacksky Technology and Microvision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blacksky Technology position performs unexpectedly, Microvision 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 Microvision will offset losses from the drop in Microvision's long position.| Blacksky Technology vs. Focus Universal | Blacksky Technology vs. ESCO Technologies | Blacksky Technology vs. Genasys | Blacksky Technology vs. Cepton Inc |
| Microvision vs. Focus Universal | Microvision vs. ESCO Technologies | Microvision vs. Genasys | Microvision vs. Cepton Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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