Correlation Between Bridger Aerospace and ConnectM Technology
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and ConnectM Technology 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 ConnectM Technology 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 ConnectM Technology Solutions,, you can compare the effects of market volatilities on Bridger Aerospace and ConnectM Technology 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 ConnectM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and ConnectM Technology.
Diversification Opportunities for Bridger Aerospace and ConnectM Technology
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bridger and ConnectM is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and ConnectM Technology Solutions, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConnectM Technology 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 ConnectM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConnectM Technology has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and ConnectM Technology go up and down completely randomly.
Pair Corralation between Bridger Aerospace and ConnectM Technology
Given the investment horizon of 90 days Bridger Aerospace Group is expected to generate 0.98 times more return on investment than ConnectM Technology. However, Bridger Aerospace Group is 1.02 times less risky than ConnectM Technology. It trades about -0.02 of its potential returns per unit of risk. ConnectM Technology Solutions, is currently generating about -0.08 per unit of risk. If you would invest 785.00 in Bridger Aerospace Group on September 2, 2024 and sell it today you would lose (510.00) from holding Bridger Aerospace Group or give up 64.97% 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. ConnectM Technology Solutions,
Performance |
| Timeline |
| Bridger Aerospace |
| ConnectM Technology |
Bridger Aerospace and ConnectM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and ConnectM Technology
The main advantage of trading using opposite Bridger Aerospace and ConnectM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, ConnectM Technology 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 ConnectM Technology will offset losses from the drop in ConnectM Technology's long position.| Bridger Aerospace vs. Desktop Metal | Bridger Aerospace vs. Knowles Cor | Bridger Aerospace vs. Ubiquiti Networks | Bridger Aerospace vs. AmpliTech Group |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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