Correlation Between ScanTech and Blue Gold

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

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

Diversification Opportunities for ScanTech and Blue Gold

0.67

Correlation Coefficient

ScanTech  Blue Gold

Poor diversification

The 3 months correlation between ScanTech and Blue is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ScanTech AI Systems and Blue Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Gold Limited and ScanTech 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 ScanTech AI Systems are associated (or correlated) with Blue Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Gold Limited has no effect on the direction of ScanTech i.e., ScanTech and Blue Gold go up and down completely randomly.

Pair Corralation between ScanTech and Blue Gold

Given the investment horizon of 90 days ScanTech AI Systems is expected to under-perform the Blue Gold. But the stock apears to be less risky and, when comparing its historical volatility, ScanTech AI Systems is 2.28 times less risky than Blue Gold. The stock trades about -0.04 of its potential returns per unit of risk. The Blue Gold Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,011  in Blue Gold Limited on September 24, 2025 and sell it today you would lose (1,745) from holding Blue Gold Limited or give up 86.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	31.5%
Values	Daily Returns

ScanTech AI Systems  vs.  Blue Gold Limited

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.

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.

Pair Trading with ScanTech and Blue Gold

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

The idea behind ScanTech AI Systems and Blue Gold Limited 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.