Correlation Between BlackRock Capital and ScanTech

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

By analyzing existing cross correlation between BlackRock Capital Allocation and ScanTech AI Systems, you can compare the effects of market volatilities on BlackRock Capital and ScanTech 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 BlackRock Capital with a short position of ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Capital and ScanTech.

Diversification Opportunities for BlackRock Capital and ScanTech

-0.62

Correlation Coefficient

BlackRock Capital  ScanTech

Excellent diversification

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

Pair Corralation between BlackRock Capital and ScanTech

Given the investment horizon of 90 days BlackRock Capital Allocation is expected to generate 0.05 times more return on investment than ScanTech. However, BlackRock Capital Allocation is 20.54 times less risky than ScanTech. It trades about 0.17 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.03 per unit of risk. If you would invest  1,435  in BlackRock Capital Allocation on June 14, 2025 and sell it today you would earn a total of  94.00  from holding BlackRock Capital Allocation or generate 6.55% return on investment over 90 days.

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

BlackRock Capital Allocation  vs.  ScanTech AI Systems

BlackRock Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Capital Allocation are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, BlackRock Capital may actually be approaching a critical reversion point that can send shares even higher in October 2025.

ScanTech AI Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanTech AI Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in October 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with BlackRock Capital and ScanTech

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

The idea behind BlackRock Capital Allocation and ScanTech AI Systems 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.