Correlation Between Blacksky Technology and GA EXpress

Can any of the company-specific risk be diversified away by investing in both Blacksky Technology and GA 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 GA 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 GA eXpress, you can compare the effects of market volatilities on Blacksky Technology and GA 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 GA EXpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blacksky Technology and GA EXpress.

Diversification Opportunities for Blacksky Technology and GA EXpress

-0.67

Correlation Coefficient

Blacksky Technology  GA EXpress

Excellent diversification

The 3 months correlation between Blacksky and GAEX is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Blacksky Technology and GA eXpress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GA 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 GA EXpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GA eXpress has no effect on the direction of Blacksky Technology i.e., Blacksky Technology and GA EXpress go up and down completely randomly.

Pair Corralation between Blacksky Technology and GA EXpress

If you would invest  1,164  in Blacksky Technology on October 27, 2024 and sell it today you would earn a total of  332.00  from holding Blacksky Technology or generate 28.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	90.48%
Values	Daily Returns

Blacksky Technology  vs.  GA eXpress

Blacksky Technology

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blacksky Technology are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Blacksky Technology showed solid returns over the last few months and may actually be approaching a breakup point.

GA eXpress

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GA eXpress has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Blacksky Technology and GA EXpress

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

The idea behind Blacksky Technology and GA 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.