Correlation Between Lilium Equity and Blade Air
Can any of the company-specific risk be diversified away by investing in both Lilium Equity 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 Lilium Equity and Blade Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lilium Equity Warrants and Blade Air Mobility, you can compare the effects of market volatilities on Lilium Equity 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 Lilium Equity with a short position of Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lilium Equity and Blade Air.
Diversification Opportunities for Lilium Equity and Blade Air
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lilium and Blade is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lilium Equity Warrants 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 Lilium Equity 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 Lilium Equity Warrants 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 Lilium Equity i.e., Lilium Equity and Blade Air go up and down completely randomly.
Pair Corralation between Lilium Equity and Blade Air
Assuming the 90 days horizon Lilium Equity Warrants is expected to under-perform the Blade Air. In addition to that, Lilium Equity is 1.18 times more volatile than Blade Air Mobility. It trades about -0.69 of its total potential returns per unit of risk. Blade Air Mobility is currently generating about 0.18 per unit of volatility. If you would invest 29.00 in Blade Air Mobility on August 28, 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 Against |
| Strength | Very Weak |
| Accuracy | 45.0% |
| Values | Daily Returns |
Lilium Equity Warrants vs. Blade Air Mobility
Performance |
| Timeline |
| Lilium Equity Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blade Air Mobility |
Lilium Equity and Blade Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lilium Equity and Blade Air
The main advantage of trading using opposite Lilium Equity and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lilium Equity 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.| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc | Lilium Equity vs. Microvast Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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