Correlation Between Bridger Aerospace and Ameriguard Security
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Ameriguard Security 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 Ameriguard Security 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 Ameriguard Security Services, you can compare the effects of market volatilities on Bridger Aerospace and Ameriguard Security 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 Ameriguard Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Ameriguard Security.
Diversification Opportunities for Bridger Aerospace and Ameriguard Security
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bridger and Ameriguard is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Ameriguard Security Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriguard Security 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 Ameriguard Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriguard Security has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Ameriguard Security go up and down completely randomly.
Pair Corralation between Bridger Aerospace and Ameriguard Security
Assuming the 90 days horizon Bridger Aerospace Group is expected to generate 1.49 times more return on investment than Ameriguard Security. However, Bridger Aerospace is 1.49 times more volatile than Ameriguard Security Services. It trades about 0.16 of its potential returns per unit of risk. Ameriguard Security Services is currently generating about -0.08 per unit of risk. If you would invest 5.30 in Bridger Aerospace Group on August 31, 2024 and sell it today you would earn a total of 4.70 from holding Bridger Aerospace Group or generate 88.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bridger Aerospace Group vs. Ameriguard Security Services
Performance |
| Timeline |
| Bridger Aerospace |
| Ameriguard Security |
Bridger Aerospace and Ameriguard Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and Ameriguard Security
The main advantage of trading using opposite Bridger Aerospace and Ameriguard Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, Ameriguard Security 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 Ameriguard Security will offset losses from the drop in Ameriguard Security's long position.| Bridger Aerospace vs. Evolv Technologies Holdings | Bridger Aerospace vs. ADT Inc | Bridger Aerospace vs. Brinks Company | Bridger Aerospace vs. Brady |
| Ameriguard Security vs. American Leisure Holdings | Ameriguard Security vs. Absolute Health and | Ameriguard Security vs. Supurva Healthcare Group | Ameriguard Security vs. China Health Management |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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