Correlation Between Bridger Aerospace and ATWEC Technologies
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and ATWEC Technologies 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 ATWEC Technologies 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 ATWEC Technologies, you can compare the effects of market volatilities on Bridger Aerospace and ATWEC Technologies 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 ATWEC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and ATWEC Technologies.
Diversification Opportunities for Bridger Aerospace and ATWEC Technologies
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bridger and ATWEC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and ATWEC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATWEC Technologies 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 ATWEC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATWEC Technologies has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and ATWEC Technologies go up and down completely randomly.
Pair Corralation between Bridger Aerospace and ATWEC Technologies
Assuming the 90 days horizon Bridger Aerospace Group is expected to generate 3.58 times more return on investment than ATWEC Technologies. However, Bridger Aerospace is 3.58 times more volatile than ATWEC Technologies. It trades about 0.1 of its potential returns per unit of risk. ATWEC Technologies is currently generating about 0.1 per unit of risk. If you would invest 17.00 in Bridger Aerospace Group on September 2, 2024 and sell it today you would lose (8.00) from holding Bridger Aerospace Group or give up 47.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 72.69% |
| Values | Daily Returns |
Bridger Aerospace Group vs. ATWEC Technologies
Performance |
| Timeline |
| Bridger Aerospace |
| ATWEC Technologies |
Bridger Aerospace and ATWEC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and ATWEC Technologies
The main advantage of trading using opposite Bridger Aerospace and ATWEC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, ATWEC Technologies 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 ATWEC Technologies will offset losses from the drop in ATWEC Technologies' 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 |
| ATWEC Technologies vs. Allegion PLC | ATWEC Technologies vs. MSA Safety | ATWEC Technologies vs. HUMANA INC | ATWEC Technologies vs. Aquagold International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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