Correlation Between 832696AV0 and Blade Air

Can any of the company-specific risk be diversified away by investing in both 832696AV0 and Blade Air 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 832696AV0 and Blade Air into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SJM 275 15 SEP 41 and Blade Air Mobility, you can compare the effects of market volatilities on 832696AV0 and Blade Air 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 832696AV0 with a short position of Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of 832696AV0 and Blade Air.

Diversification Opportunities for 832696AV0 and Blade Air

0.0

Correlation Coefficient

832696AV0  Blade Air

Pay attention - limited upside

The 3 months correlation between 832696AV0 and Blade is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SJM 275 15 SEP 41 and Blade Air Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blade Air Mobility and 832696AV0 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 SJM 275 15 SEP 41 are associated (or correlated) with Blade Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blade Air Mobility has no effect on the direction of 832696AV0 i.e., 832696AV0 and Blade Air go up and down completely randomly.

Pair Corralation between 832696AV0 and Blade Air

If you would invest  464.00  in Blade Air Mobility on October 9, 2024 and sell it today you would earn a total of  27.00  from holding Blade Air Mobility or generate 5.82% return on investment over 90 days.

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

SJM 275 15 SEP 41  vs.  Blade Air Mobility

SJM 275 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SJM 275 15 SEP 41 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 832696AV0 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Blade Air Mobility

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blade Air Mobility are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Blade Air exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 832696AV0 and Blade Air

The main advantage of trading using opposite 832696AV0 and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 832696AV0 position performs unexpectedly, Blade Air 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 Blade Air will offset losses from the drop in Blade Air's long position.

The idea behind SJM 275 15 SEP 41 and Blade Air Mobility 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.