Correlation Between Blade Air and AST SpaceMobile
Can any of the company-specific risk be diversified away by investing in both Blade Air and AST SpaceMobile 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 AST SpaceMobile 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 AST SpaceMobile, you can compare the effects of market volatilities on Blade Air and AST SpaceMobile 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 AST SpaceMobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blade Air and AST SpaceMobile.
Diversification Opportunities for Blade Air and AST SpaceMobile
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blade and AST is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Blade Air Mobility and AST SpaceMobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AST SpaceMobile 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 AST SpaceMobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AST SpaceMobile has no effect on the direction of Blade Air i.e., Blade Air and AST SpaceMobile go up and down completely randomly.
Pair Corralation between Blade Air and AST SpaceMobile
If you would invest 27.00 in Blade Air Mobility on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Blade Air Mobility or generate 92.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Blade Air Mobility vs. AST SpaceMobile
Performance |
| Timeline |
| Blade Air Mobility |
| AST SpaceMobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blade Air and AST SpaceMobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blade Air and AST SpaceMobile
The main advantage of trading using opposite Blade Air and AST SpaceMobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blade Air position performs unexpectedly, AST SpaceMobile 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 AST SpaceMobile will offset losses from the drop in AST SpaceMobile's long position.The idea behind Blade Air Mobility and AST SpaceMobile 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.| AST SpaceMobile vs. Origin Materials Warrant | AST SpaceMobile vs. Ast Spacemobile | AST SpaceMobile vs. Paysafe Ltd Wt | AST SpaceMobile vs. EVgo Equity Warrants |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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