Correlation Between Citigroup and Blade Air
Can any of the company-specific risk be diversified away by investing in both Citigroup 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 Citigroup and Blade Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Blade Air Mobility, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Blade Air.
Diversification Opportunities for Citigroup and Blade Air
Very weak diversification
The 3 months correlation between Citigroup and Blade is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup 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 Citigroup 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 Citigroup 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 Citigroup i.e., Citigroup and Blade Air go up and down completely randomly.
Pair Corralation between Citigroup and Blade Air
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.96 times less return on investment than Blade Air. But when comparing it to its historical volatility, Citigroup is 2.61 times less risky than Blade Air. It trades about 0.21 of its potential returns per unit of risk. Blade Air Mobility is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 374.00 in Blade Air Mobility on August 31, 2024 and sell it today you would earn a total of 65.00 from holding Blade Air Mobility or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Blade Air Mobility
Performance |
| Timeline |
| Citigroup |
| Blade Air Mobility |
Citigroup and Blade Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Blade Air
The main advantage of trading using opposite Citigroup and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |