Correlation Between Corporacion America and Blade Air
Can any of the company-specific risk be diversified away by investing in both Corporacion America 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 Corporacion America and Blade Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporacion America Airports and Blade Air Mobility, you can compare the effects of market volatilities on Corporacion America 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 Corporacion America with a short position of Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporacion America and Blade Air.
Diversification Opportunities for Corporacion America and Blade Air
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corporacion and Blade is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Corporacion America Airports 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 Corporacion America 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 Corporacion America Airports 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 Corporacion America i.e., Corporacion America and Blade Air go up and down completely randomly.
Pair Corralation between Corporacion America and Blade Air
Given the investment horizon of 90 days Corporacion America Airports is expected to under-perform the Blade Air. But the stock apears to be less risky and, when comparing its historical volatility, Corporacion America Airports is 5.65 times less risky than Blade Air. The stock trades about -0.02 of its potential returns per unit of risk. The Blade Air Mobility is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Blade Air Mobility on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Blade Air Mobility or generate 68.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Corporacion America Airports vs. Blade Air Mobility
Performance |
| Timeline |
| Corporacion America |
| Blade Air Mobility |
Corporacion America and Blade Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporacion America and Blade Air
The main advantage of trading using opposite Corporacion America and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporacion America 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.| Corporacion America vs. Grupo Aeroportuario del | Corporacion America vs. Grupo Aeroportuario del | Corporacion America vs. AerSale Corp | Corporacion America vs. Grupo Aeroportuario del |
| Blade Air vs. Joby Aviation | Blade Air vs. Innoviz Technologies | Blade Air vs. Origin Materials Warrant | Blade Air vs. HUMANA INC |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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