Correlation Between Bridger Aerospace and Global Crossing
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Global Crossing 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 Global Crossing 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 Global Crossing Airlines, you can compare the effects of market volatilities on Bridger Aerospace and Global Crossing 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 Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Global Crossing.
Diversification Opportunities for Bridger Aerospace and Global Crossing
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bridger and Global is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines 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 Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Global Crossing go up and down completely randomly.
Pair Corralation between Bridger Aerospace and Global Crossing
Given the investment horizon of 90 days Bridger Aerospace Group is expected to generate 1.52 times more return on investment than Global Crossing. However, Bridger Aerospace is 1.52 times more volatile than Global Crossing Airlines. It trades about 0.02 of its potential returns per unit of risk. Global Crossing Airlines is currently generating about -0.01 per unit of risk. If you would invest 367.00 in Bridger Aerospace Group on November 2, 2024 and sell it today you would lose (91.00) from holding Bridger Aerospace Group or give up 24.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridger Aerospace Group vs. Global Crossing Airlines
Performance |
| Timeline |
| Bridger Aerospace |
| Global Crossing Airlines |
Bridger Aerospace and Global Crossing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and Global Crossing
The main advantage of trading using opposite Bridger Aerospace and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, Global Crossing 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 Global Crossing will offset losses from the drop in Global Crossing's long position.| Bridger Aerospace vs. Allegion PLC | Bridger Aerospace vs. MSA Safety | Bridger Aerospace vs. Resideo Technologies | Bridger Aerospace vs. NL Industries |
| Global Crossing vs. Finnair Oyj | Global Crossing vs. easyJet plc | Global Crossing vs. Norse Atlantic ASA | Global Crossing vs. Air New Zealand |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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