Correlation Between ASSA ABLOY and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both ASSA ABLOY 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 ASSA ABLOY and Bridger Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASSA ABLOY AB and Bridger Aerospace Group, you can compare the effects of market volatilities on ASSA ABLOY 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 ASSA ABLOY with a short position of Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASSA ABLOY and Bridger Aerospace.
Diversification Opportunities for ASSA ABLOY and Bridger Aerospace
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASSA and Bridger is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ASSA ABLOY AB and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace and ASSA ABLOY 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 ASSA ABLOY AB 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 ASSA ABLOY i.e., ASSA ABLOY and Bridger Aerospace go up and down completely randomly.
Pair Corralation between ASSA ABLOY and Bridger Aerospace
Assuming the 90 days horizon ASSA ABLOY is expected to generate 73.26 times less return on investment than Bridger Aerospace. But when comparing it to its historical volatility, ASSA ABLOY AB is 53.42 times less risky than Bridger Aerospace. It trades about 0.08 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 17.00 in Bridger Aerospace Group on September 2, 2024 and sell it today you would lose (8.00) from holding Bridger Aerospace Group or give up 47.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.73% |
| Values | Daily Returns |
ASSA ABLOY AB vs. Bridger Aerospace Group
Performance |
| Timeline |
| ASSA ABLOY AB |
| Bridger Aerospace |
ASSA ABLOY and Bridger Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASSA ABLOY and Bridger Aerospace
The main advantage of trading using opposite ASSA ABLOY and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASSA ABLOY 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.| ASSA ABLOY vs. Bridger Aerospace Group | ASSA ABLOY vs. ATWEC Technologies | ASSA ABLOY vs. Assa Abloy AB | ASSA ABLOY vs. Brinks Company |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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