Correlation Between Bridger Aerospace and LogicMark
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and LogicMark 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 LogicMark 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 LogicMark, you can compare the effects of market volatilities on Bridger Aerospace and LogicMark 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 LogicMark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and LogicMark.
Diversification Opportunities for Bridger Aerospace and LogicMark
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bridger and LogicMark is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and LogicMark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogicMark 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 LogicMark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogicMark has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and LogicMark go up and down completely randomly.
Pair Corralation between Bridger Aerospace and LogicMark
Given the investment horizon of 90 days Bridger Aerospace Group is expected to generate 1.97 times more return on investment than LogicMark. However, Bridger Aerospace is 1.97 times more volatile than LogicMark. It trades about 0.22 of its potential returns per unit of risk. LogicMark is currently generating about -0.17 per unit of risk. If you would invest 218.00 in Bridger Aerospace Group on October 23, 2024 and sell it today you would earn a total of 72.50 from holding Bridger Aerospace Group or generate 33.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridger Aerospace Group vs. LogicMark
Performance |
| Timeline |
| Bridger Aerospace |
| LogicMark |
Bridger Aerospace and LogicMark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and LogicMark
The main advantage of trading using opposite Bridger Aerospace and LogicMark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, LogicMark 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 LogicMark will offset losses from the drop in LogicMark's long position.| Bridger Aerospace vs. Allegion PLC | Bridger Aerospace vs. MSA Safety | Bridger Aerospace vs. Resideo Technologies | Bridger Aerospace vs. NL Industries |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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