Correlation Between Bridger Aerospace and Blue Line
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Blue Line 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 Blue Line 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 Blue Line Protection, you can compare the effects of market volatilities on Bridger Aerospace and Blue Line 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 Blue Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Blue Line.
Diversification Opportunities for Bridger Aerospace and Blue Line
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bridger and Blue is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Blue Line Protection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Line Protection 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 Blue Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Line Protection has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Blue Line go up and down completely randomly.
Pair Corralation between Bridger Aerospace and Blue Line
Assuming the 90 days horizon Bridger Aerospace Group is expected to generate 3.42 times more return on investment than Blue Line. However, Bridger Aerospace is 3.42 times more volatile than Blue Line Protection. It trades about 0.07 of its potential returns per unit of risk. Blue Line Protection is currently generating about 0.07 per unit of risk. If you would invest 16.00 in Bridger Aerospace Group on September 4, 2024 and sell it today you would lose (6.00) from holding Bridger Aerospace Group or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.34% |
| Values | Daily Returns |
Bridger Aerospace Group vs. Blue Line Protection
Performance |
| Timeline |
| Bridger Aerospace |
| Blue Line Protection |
Bridger Aerospace and Blue Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and Blue Line
The main advantage of trading using opposite Bridger Aerospace and Blue Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, Blue Line 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 Blue Line will offset losses from the drop in Blue Line's long position.| Bridger Aerospace vs. Vita Coco | Bridger Aerospace vs. Compania Cervecerias Unidas | Bridger Aerospace vs. Playtika Holding Corp | Bridger Aerospace vs. Emerson Radio |
| Blue Line vs. BIO Key International | Blue Line vs. LogicMark | Blue Line vs. Knightscope | Blue Line vs. Guardforce AI Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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