Correlation Between BlackRock ESG and ScanTech

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

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

Diversification Opportunities for BlackRock ESG and ScanTech

-0.73

Correlation Coefficient

BlackRock ESG  ScanTech

Pay attention - limited upside

The 3 months correlation between BlackRock and ScanTech is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital 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 ESG 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 ESG Capital 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 ESG i.e., BlackRock ESG and ScanTech go up and down completely randomly.

Pair Corralation between BlackRock ESG and ScanTech

Given the investment horizon of 90 days BlackRock ESG Capital is expected to generate 0.05 times more return on investment than ScanTech. However, BlackRock ESG Capital is 20.3 times less risky than ScanTech. It trades about 0.21 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.04 per unit of risk. If you would invest  1,523  in BlackRock ESG Capital on May 10, 2025 and sell it today you would earn a total of  122.00  from holding BlackRock ESG Capital or generate 8.01% return on investment over 90 days.

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

BlackRock ESG Capital  vs.  ScanTech AI Systems

BlackRock ESG Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock ESG Capital are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BlackRock ESG may actually be approaching a critical reversion point that can send shares even higher in September 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 uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with BlackRock ESG and ScanTech

The main advantage of trading using opposite BlackRock ESG and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock ESG 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 ESG Capital 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.