Correlation Between Bridger Aerospace and Hasbro
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Hasbro 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 Hasbro 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 Hasbro Inc, you can compare the effects of market volatilities on Bridger Aerospace and Hasbro 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 Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Hasbro.
Diversification Opportunities for Bridger Aerospace and Hasbro
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bridger and Hasbro is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc 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 Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Hasbro go up and down completely randomly.
Pair Corralation between Bridger Aerospace and Hasbro
Assuming the 90 days horizon Bridger Aerospace Group is expected to generate 35.65 times more return on investment than Hasbro. However, Bridger Aerospace is 35.65 times more volatile than Hasbro Inc. It trades about 0.07 of its potential returns per unit of risk. Hasbro Inc is currently generating about 0.03 per unit of risk. If you would invest 16.00 in Bridger Aerospace Group on September 12, 2024 and sell it today you would lose (8.50) from holding Bridger Aerospace Group or give up 53.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.39% |
| Values | Daily Returns |
Bridger Aerospace Group vs. Hasbro Inc
Performance |
| Timeline |
| Bridger Aerospace |
| Hasbro Inc |
Bridger Aerospace and Hasbro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and Hasbro
The main advantage of trading using opposite Bridger Aerospace and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.| Bridger Aerospace vs. Hasbro Inc | Bridger Aerospace vs. JD Sports Fashion | Bridger Aerospace vs. Mattel Inc | Bridger Aerospace vs. Supercom |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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