Correlation Between Blue Gold and ScanTech

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

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

Diversification Opportunities for Blue Gold and ScanTech

0.65

Correlation Coefficient

Blue Gold  ScanTech

Poor diversification

The 3 months correlation between Blue and ScanTech is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Blue Gold Limited 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 Blue Gold 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 Blue Gold Limited 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 Blue Gold i.e., Blue Gold and ScanTech go up and down completely randomly.

Pair Corralation between Blue Gold and ScanTech

Considering the 90-day investment horizon Blue Gold Limited is expected to under-perform the ScanTech. But the stock apears to be less risky and, when comparing its historical volatility, Blue Gold Limited is 1.52 times less risky than ScanTech. The stock trades about -0.25 of its potential returns per unit of risk. The ScanTech AI Systems is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  1,016  in ScanTech AI Systems on September 20, 2025 and sell it today you would lose (655.00) from holding ScanTech AI Systems or give up 64.47% of portfolio value over 90 days.

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

Blue Gold Limited  vs.  ScanTech AI Systems

Blue Gold Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Blue Gold Limited 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 technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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 January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Blue Gold and ScanTech

The main advantage of trading using opposite Blue Gold and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Gold 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 Blue Gold Limited 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..