Correlation Between Blade Air and Blade Air
Can any of the company-specific risk be diversified away by investing in both Blade Air and Blade Air 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 Blade Air and Blade Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blade Air Mobility and Blade Air Mobility, you can compare the effects of market volatilities on Blade Air and Blade Air 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 Blade Air with a short position of Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blade Air and Blade Air.
Diversification Opportunities for Blade Air and Blade Air
Poor diversification
The 3 months correlation between Blade and Blade is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Blade Air Mobility and Blade Air Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blade Air Mobility and Blade Air 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 Blade Air Mobility are associated (or correlated) with Blade Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blade Air Mobility has no effect on the direction of Blade Air i.e., Blade Air and Blade Air go up and down completely randomly.
Pair Corralation between Blade Air and Blade Air
Given the investment horizon of 90 days Blade Air is expected to generate 53.42 times less return on investment than Blade Air. But when comparing it to its historical volatility, Blade Air Mobility is 2.99 times less risky than Blade Air. It trades about 0.01 of its potential returns per unit of risk. Blade Air Mobility is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Blade Air Mobility on August 27, 2024 and sell it today you would earn a total of 11.00 from holding Blade Air Mobility or generate 37.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Blade Air Mobility vs. Blade Air Mobility
Performance |
| Timeline |
| Blade Air Mobility |
| Blade Air Mobility |
Blade Air and Blade Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blade Air and Blade Air
The main advantage of trading using opposite Blade Air and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blade Air position performs unexpectedly, Blade Air 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 Blade Air will offset losses from the drop in Blade Air's long position.| Blade Air vs. Grupo Aeroportuario del | Blade Air vs. Auckland International Airport | Blade Air vs. Aeroports de Paris | Blade Air vs. Aena SME SA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |