Correlation Between Blade Air and Consilium Acquisition

Can any of the company-specific risk be diversified away by investing in both Blade Air and Consilium Acquisition 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 Consilium Acquisition 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 Consilium Acquisition I, you can compare the effects of market volatilities on Blade Air and Consilium Acquisition 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 Consilium Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blade Air and Consilium Acquisition.

Diversification Opportunities for Blade Air and Consilium Acquisition

0.0

Correlation Coefficient

Blade Air  Consilium Acquisition

Pay attention - limited upside

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

Pair Corralation between Blade Air and Consilium Acquisition

If you would invest (100.00) in Consilium Acquisition I on December 21, 2024 and sell it today you would earn a total of  100.00  from holding Consilium Acquisition I 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

Blade Air Mobility  vs.  Consilium Acquisition I

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.

Consilium Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Consilium Acquisition I has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Consilium Acquisition is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Blade Air and Consilium Acquisition

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

The idea behind Blade Air Mobility and Consilium Acquisition I 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 Transaction History module to view history of all your transactions and understand their impact on performance.