Correlation Between Bridger Aerospace and Iveda Solutions
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Iveda Solutions 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 Iveda Solutions 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 Iveda Solutions Warrant, you can compare the effects of market volatilities on Bridger Aerospace and Iveda Solutions 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 Iveda Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Iveda Solutions.
Diversification Opportunities for Bridger Aerospace and Iveda Solutions
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bridger and Iveda is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Iveda Solutions Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iveda Solutions Warrant 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 Iveda Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iveda Solutions Warrant has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Iveda Solutions go up and down completely randomly.
Pair Corralation between Bridger Aerospace and Iveda Solutions
Given the investment horizon of 90 days Bridger Aerospace is expected to generate 1.54 times less return on investment than Iveda Solutions. But when comparing it to its historical volatility, Bridger Aerospace Group is 2.91 times less risky than Iveda Solutions. It trades about 0.22 of its potential returns per unit of risk. Iveda Solutions Warrant is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Iveda Solutions Warrant on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Iveda Solutions Warrant or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Bridger Aerospace Group vs. Iveda Solutions Warrant
Performance |
| Timeline |
| Bridger Aerospace |
| Iveda Solutions Warrant |
Bridger Aerospace and Iveda Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and Iveda Solutions
The main advantage of trading using opposite Bridger Aerospace and Iveda Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, Iveda Solutions 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 Iveda Solutions will offset losses from the drop in Iveda Solutions' long position.| Bridger Aerospace vs. Allegion PLC | Bridger Aerospace vs. MSA Safety | Bridger Aerospace vs. Resideo Technologies | Bridger Aerospace vs. NL Industries |
| Iveda Solutions vs. Iveda Solutions | Iveda Solutions vs. Aclarion | Iveda Solutions vs. Thayer Ventures Acquisition | Iveda Solutions vs. NexGel Warrant |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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