Correlation Between Apple and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both Apple and Bridger Aerospace 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 Apple and Bridger Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Bridger Aerospace Group, you can compare the effects of market volatilities on Apple and Bridger Aerospace 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 Apple with a short position of Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Bridger Aerospace.
Diversification Opportunities for Apple and Bridger Aerospace
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Bridger is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace and Apple 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 Apple Inc are associated (or correlated) with Bridger Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridger Aerospace has no effect on the direction of Apple i.e., Apple and Bridger Aerospace go up and down completely randomly.
Pair Corralation between Apple and Bridger Aerospace
Given the investment horizon of 90 days Apple is expected to generate 17.34 times less return on investment than Bridger Aerospace. But when comparing it to its historical volatility, Apple Inc is 15.12 times less risky than Bridger Aerospace. It trades about 0.09 of its potential returns per unit of risk. Bridger Aerospace Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Bridger Aerospace Group on November 1, 2024 and sell it today you would earn a total of 2.00 from holding Bridger Aerospace Group or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Bridger Aerospace Group
Performance |
| Timeline |
| Apple Inc |
| Bridger Aerospace |
Apple and Bridger Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Bridger Aerospace
The main advantage of trading using opposite Apple and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Bridger Aerospace 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 Bridger Aerospace will offset losses from the drop in Bridger Aerospace's long position.| Apple vs. Rigetti Computing | Apple vs. D Wave Quantum | Apple vs. Desktop Metal | Apple vs. Quantum Computing |
| Bridger Aerospace vs. Deluxe | Bridger Aerospace vs. Sensient Technologies | Bridger Aerospace vs. Codexis | Bridger Aerospace vs. Boston Omaha Corp |
Check out your portfolio center.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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |