Correlation Between BIO Key and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both BIO Key and Bridger Aerospace 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 BIO Key and Bridger Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIO Key International and Bridger Aerospace Group, you can compare the effects of market volatilities on BIO Key and Bridger Aerospace 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 BIO Key with a short position of Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIO Key and Bridger Aerospace.
Diversification Opportunities for BIO Key and Bridger Aerospace
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIO and Bridger is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding BIO Key International and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace and BIO Key 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 BIO Key International are associated (or correlated) with Bridger Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridger Aerospace has no effect on the direction of BIO Key i.e., BIO Key and Bridger Aerospace go up and down completely randomly.
Pair Corralation between BIO Key and Bridger Aerospace
Given the investment horizon of 90 days BIO Key International is expected to under-perform the Bridger Aerospace. But the stock apears to be less risky and, when comparing its historical volatility, BIO Key International is 10.8 times less risky than Bridger Aerospace. The stock trades about -0.01 of its potential returns per unit of risk. The Bridger Aerospace Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Insignificant |
| Accuracy | 72.98% |
| Values | Daily Returns |
BIO Key International vs. Bridger Aerospace Group
Performance |
| Timeline |
| BIO Key International |
| Bridger Aerospace |
BIO Key and Bridger Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIO Key and Bridger Aerospace
The main advantage of trading using opposite BIO Key and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIO Key position performs unexpectedly, Bridger Aerospace 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 Bridger Aerospace will offset losses from the drop in Bridger Aerospace's long position.| BIO Key vs. LogicMark | BIO Key vs. SSC Security Services | BIO Key vs. ICTS International NV | BIO Key vs. Senstar Technologies |
| Bridger Aerospace vs. Franklin Credit Management | Bridger Aerospace vs. Logan Ridge Finance | Bridger Aerospace vs. Kite Realty Group | Bridger Aerospace vs. Aldel Financial II |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |