Correlation Between Bridger Aerospace and Brinks
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Brinks 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 Bridger Aerospace and Brinks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridger Aerospace Group and Brinks Company, you can compare the effects of market volatilities on Bridger Aerospace and Brinks 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 Bridger Aerospace with a short position of Brinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Brinks.
Diversification Opportunities for Bridger Aerospace and Brinks
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bridger and Brinks is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Brinks Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinks Company and Bridger Aerospace 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 Bridger Aerospace Group are associated (or correlated) with Brinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinks Company has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Brinks go up and down completely randomly.
Pair Corralation between Bridger Aerospace and Brinks
Given the investment horizon of 90 days Bridger Aerospace Group is expected to under-perform the Brinks. In addition to that, Bridger Aerospace is 2.46 times more volatile than Brinks Company. It trades about -0.2 of its total potential returns per unit of risk. Brinks Company is currently generating about -0.18 per unit of volatility. If you would invest 10,346 in Brinks Company on August 31, 2024 and sell it today you would lose (725.00) from holding Brinks Company or give up 7.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridger Aerospace Group vs. Brinks Company
Performance |
| Timeline |
| Bridger Aerospace |
| Brinks Company |
Bridger Aerospace and Brinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and Brinks
The main advantage of trading using opposite Bridger Aerospace and Brinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, Brinks 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 Brinks will offset losses from the drop in Brinks' long position.| Bridger Aerospace vs. Allegion PLC | Bridger Aerospace vs. MSA Safety | Bridger Aerospace vs. Resideo Technologies | Bridger Aerospace vs. NL Industries |
| Brinks vs. MSA Safety | Brinks vs. Resideo Technologies | Brinks vs. Mistras Group | Brinks vs. NL Industries |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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