Correlation Between NYSE Composite and Blade Air
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Blade Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Blade Air Mobility, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Blade Air.
Diversification Opportunities for NYSE Composite and Blade Air
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Blade is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Blade Air go up and down completely randomly.
Pair Corralation between NYSE Composite and Blade Air
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.14 times more return on investment than Blade Air. However, NYSE Composite is 7.24 times less risky than Blade Air. It trades about 0.24 of its potential returns per unit of risk. Blade Air Mobility is currently generating about 0.01 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 27, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Blade Air Mobility
Performance |
| Timeline |
NYSE Composite and Blade Air Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Blade Air Mobility
Pair trading matchups for Blade Air
Pair Trading with NYSE Composite and Blade Air
The main advantage of trading using opposite NYSE Composite and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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