Correlation Between Blacksky Technology and Scentre
Can any of the company-specific risk be diversified away by investing in both Blacksky Technology and Scentre 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 Scentre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blacksky Technology and Scentre Group, you can compare the effects of market volatilities on Blacksky Technology and Scentre 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 Scentre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blacksky Technology and Scentre.
Diversification Opportunities for Blacksky Technology and Scentre
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blacksky and Scentre is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Blacksky Technology and Scentre Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scentre Group 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 Scentre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scentre Group has no effect on the direction of Blacksky Technology i.e., Blacksky Technology and Scentre go up and down completely randomly.
Pair Corralation between Blacksky Technology and Scentre
Given the investment horizon of 90 days Blacksky Technology is expected to generate 4.24 times more return on investment than Scentre. However, Blacksky Technology is 4.24 times more volatile than Scentre Group. It trades about 0.09 of its potential returns per unit of risk. Scentre Group is currently generating about -0.24 per unit of risk. If you would invest 1,098 in Blacksky Technology on October 25, 2024 and sell it today you would earn a total of 71.00 from holding Blacksky Technology or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blacksky Technology vs. Scentre Group
Performance |
| Timeline |
| Blacksky Technology |
| Scentre Group |
Blacksky Technology and Scentre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blacksky Technology and Scentre
The main advantage of trading using opposite Blacksky Technology and Scentre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blacksky Technology position performs unexpectedly, Scentre 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 Scentre will offset losses from the drop in Scentre's long position.| Blacksky Technology vs. Focus Universal | Blacksky Technology vs. ESCO Technologies | Blacksky Technology vs. Genasys | Blacksky Technology vs. Darkpulse |
| Scentre vs. Mapletree Commercial Trust | Scentre vs. Retail Opportunity Investments | Scentre vs. Kimco Realty |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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