Correlation Between Blade Air and BioAge Labs,

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

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

Diversification Opportunities for Blade Air and BioAge Labs,

0.62

Correlation Coefficient

Blade Air  BioAge Labs,

Poor diversification

The 3 months correlation between Blade and BioAge is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Blade Air Mobility and BioAge Labs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioAge Labs, and Blade Air 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 Blade Air Mobility are associated (or correlated) with BioAge Labs,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioAge Labs, has no effect on the direction of Blade Air i.e., Blade Air and BioAge Labs, go up and down completely randomly.

Pair Corralation between Blade Air and BioAge Labs,

Given the investment horizon of 90 days Blade Air Mobility is expected to under-perform the BioAge Labs,. But the stock apears to be less risky and, when comparing its historical volatility, Blade Air Mobility is 1.04 times less risky than BioAge Labs,. The stock trades about -0.08 of its potential returns per unit of risk. The BioAge Labs, is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  517.00  in BioAge Labs, on December 19, 2024 and sell it today you would lose (73.00) from holding BioAge Labs, or give up 14.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Blade Air Mobility  vs.  BioAge Labs,

Blade Air Mobility

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blade Air Mobility has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

BioAge Labs,

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioAge Labs, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Blade Air and BioAge Labs,

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

The idea behind Blade Air Mobility and BioAge Labs, 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.