Correlation Between Blacksky Technology and Express

Can any of the company-specific risk be diversified away by investing in both Blacksky Technology and Express 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 Blacksky Technology and Express into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blacksky Technology and Express, you can compare the effects of market volatilities on Blacksky Technology and Express 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 Blacksky Technology with a short position of Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blacksky Technology and Express.

Diversification Opportunities for Blacksky Technology and Express

0.0

Correlation Coefficient

Blacksky Technology  Express

Pay attention - limited upside

The 3 months correlation between Blacksky and Express is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blacksky Technology and Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Express and Blacksky Technology 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 Blacksky Technology are associated (or correlated) with Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Express has no effect on the direction of Blacksky Technology i.e., Blacksky Technology and Express go up and down completely randomly.

Pair Corralation between Blacksky Technology and Express

If you would invest (100.00) in Express on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Express or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Blacksky Technology  vs.  Express

Blacksky Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blacksky Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Blacksky Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Express

Risk-Adjusted Performance

Very Weak

Over the last 90 days Express has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Express is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Blacksky Technology and Express

The main advantage of trading using opposite Blacksky Technology and Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blacksky Technology position performs unexpectedly, Express 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 Express will offset losses from the drop in Express' long position.

The idea behind Blacksky Technology and Express 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.