Correlation Between Blacksky Technology and MQGAU

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

By analyzing existing cross correlation between Blacksky Technology and MQGAU 5491 09 NOV 33, you can compare the effects of market volatilities on Blacksky Technology and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blacksky Technology and MQGAU.

Diversification Opportunities for Blacksky Technology and MQGAU

0.47

Correlation Coefficient

Blacksky Technology  MQGAU

Very weak diversification

The 3 months correlation between Blacksky and MQGAU is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Blacksky Technology and MQGAU 5491 09 NOV 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5491 09 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5491 09 has no effect on the direction of Blacksky Technology i.e., Blacksky Technology and MQGAU go up and down completely randomly.

Pair Corralation between Blacksky Technology and MQGAU

Given the investment horizon of 90 days Blacksky Technology is expected to generate 6.39 times more return on investment than MQGAU. However, Blacksky Technology is 6.39 times more volatile than MQGAU 5491 09 NOV 33. It trades about 0.09 of its potential returns per unit of risk. MQGAU 5491 09 NOV 33 is currently generating about -0.84 per unit of risk. If you would invest  1,099  in Blacksky Technology on October 9, 2024 and sell it today you would earn a total of  87.00  from holding Blacksky Technology or generate 7.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	31.58%
Values	Daily Returns

Blacksky Technology  vs.  MQGAU 5491 09 NOV 33

Blacksky Technology

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blacksky Technology are ranked lower than 16 (%) 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.

MQGAU 5491 09

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MQGAU 5491 09 NOV 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat 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 MQGAU 5491 09 NOV 33 investors.

Pair Trading with Blacksky Technology and MQGAU

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

The idea behind Blacksky Technology and MQGAU 5491 09 NOV 33 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.