Correlation Between Blade Air and Lilium NV
Can any of the company-specific risk be diversified away by investing in both Blade Air and Lilium NV 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 Lilium NV 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 Lilium NV, you can compare the effects of market volatilities on Blade Air and Lilium NV 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 Lilium NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blade Air and Lilium NV.
Diversification Opportunities for Blade Air and Lilium NV
Excellent diversification
The 3 months correlation between Blade and Lilium is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Blade Air Mobility and Lilium NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lilium NV 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 Lilium NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lilium NV has no effect on the direction of Blade Air i.e., Blade Air and Lilium NV go up and down completely randomly.
Pair Corralation between Blade Air and Lilium NV
Given the investment horizon of 90 days Blade Air Mobility is expected to generate 0.12 times more return on investment than Lilium NV. However, Blade Air Mobility is 8.22 times less risky than Lilium NV. It trades about -0.11 of its potential returns per unit of risk. Lilium NV is currently generating about -0.08 per unit of risk. If you would invest 371.00 in Blade Air Mobility on August 24, 2024 and sell it today you would lose (41.00) from holding Blade Air Mobility or give up 11.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Blade Air Mobility vs. Lilium NV
Performance |
| Timeline |
| Blade Air Mobility |
| Lilium NV |
Blade Air and Lilium NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blade Air and Lilium NV
The main advantage of trading using opposite Blade Air and Lilium NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blade Air position performs unexpectedly, Lilium NV 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 Lilium NV will offset losses from the drop in Lilium NV'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 |
| Lilium NV vs. Vertical Aerospace | Lilium NV vs. Ehang Holdings | Lilium NV vs. Rocket Lab USA | Lilium NV vs. Archer Aviation |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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