Correlation Between Bridger Aerospace and Iveda Solutions
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Iveda Solutions 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 Iveda Solutions 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 Iveda Solutions, you can compare the effects of market volatilities on Bridger Aerospace and Iveda Solutions 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 Iveda Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Iveda Solutions.
Diversification Opportunities for Bridger Aerospace and Iveda Solutions
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bridger and Iveda is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Iveda Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iveda Solutions 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 Iveda Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iveda Solutions has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Iveda Solutions go up and down completely randomly.
Pair Corralation between Bridger Aerospace and Iveda Solutions
Assuming the 90 days horizon Bridger Aerospace Group is expected to under-perform the Iveda Solutions. In addition to that, Bridger Aerospace is 1.21 times more volatile than Iveda Solutions. It trades about -0.02 of its total potential returns per unit of risk. Iveda Solutions is currently generating about 0.09 per unit of volatility. If you would invest 166.00 in Iveda Solutions on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Iveda Solutions or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridger Aerospace Group vs. Iveda Solutions
Performance |
| Timeline |
| Bridger Aerospace |
| Iveda Solutions |
Bridger Aerospace and Iveda Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and Iveda Solutions
The main advantage of trading using opposite Bridger Aerospace and Iveda Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, Iveda Solutions 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 Iveda Solutions will offset losses from the drop in Iveda Solutions' long position.| Bridger Aerospace vs. Plexus Corp | Bridger Aerospace vs. Jabil Circuit | Bridger Aerospace vs. Sanmina | Bridger Aerospace vs. Methode Electronics |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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