Correlation Between Bridger Aerospace and Assa Abloy
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Assa Abloy 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 Assa Abloy 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 Assa Abloy AB, you can compare the effects of market volatilities on Bridger Aerospace and Assa Abloy 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 Assa Abloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Assa Abloy.
Diversification Opportunities for Bridger Aerospace and Assa Abloy
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bridger and Assa is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Assa Abloy AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assa Abloy AB 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 Assa Abloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assa Abloy AB has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Assa Abloy go up and down completely randomly.
Pair Corralation between Bridger Aerospace and Assa Abloy
Assuming the 90 days horizon Bridger Aerospace Group is expected to generate 23.64 times more return on investment than Assa Abloy. However, Bridger Aerospace is 23.64 times more volatile than Assa Abloy AB. It trades about 0.17 of its potential returns per unit of risk. Assa Abloy AB is currently generating about -0.04 per unit of risk. If you would invest 3.00 in Bridger Aerospace Group on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Bridger Aerospace Group or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.19% |
| Values | Daily Returns |
Bridger Aerospace Group vs. Assa Abloy AB
Performance |
| Timeline |
| Bridger Aerospace |
| Assa Abloy AB |
Bridger Aerospace and Assa Abloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and Assa Abloy
The main advantage of trading using opposite Bridger Aerospace and Assa Abloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, Assa Abloy 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 Assa Abloy will offset losses from the drop in Assa Abloy's long position.| Bridger Aerospace vs. Franklin Credit Management | Bridger Aerospace vs. Logan Ridge Finance | Bridger Aerospace vs. Kite Realty Group | Bridger Aerospace vs. Aldel Financial II |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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