Correlation Between Bridger Aerospace and Brinker International
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Brinker International 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 Brinker International 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 Brinker International, you can compare the effects of market volatilities on Bridger Aerospace and Brinker International 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 Brinker International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Brinker International.
Diversification Opportunities for Bridger Aerospace and Brinker International
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bridger and Brinker is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Brinker International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinker International 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 Brinker International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinker International has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Brinker International go up and down completely randomly.
Pair Corralation between Bridger Aerospace and Brinker International
Given the investment horizon of 90 days Bridger Aerospace Group is expected to under-perform the Brinker International. In addition to that, Bridger Aerospace is 1.57 times more volatile than Brinker International. It trades about -0.18 of its total potential returns per unit of risk. Brinker International is currently generating about 0.52 per unit of volatility. If you would invest 9,701 in Brinker International on August 30, 2024 and sell it today you would earn a total of 3,368 from holding Brinker International or generate 34.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridger Aerospace Group vs. Brinker International
Performance |
| Timeline |
| Bridger Aerospace |
| Brinker International |
Bridger Aerospace and Brinker International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and Brinker International
The main advantage of trading using opposite Bridger Aerospace and Brinker International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, Brinker International 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 Brinker International will offset losses from the drop in Brinker International's long position.| Bridger Aerospace vs. Guardforce AI Co | Bridger Aerospace vs. Supercom | Bridger Aerospace vs. Guardforce AI Co | Bridger Aerospace vs. Merck Company |
| Brinker International vs. Jack In The | Brinker International vs. Potbelly Co | Brinker International vs. Rave Restaurant Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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