Correlation Between Blue Line and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both Blue Line 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 Blue Line and Bridger Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Line Protection and Bridger Aerospace Group, you can compare the effects of market volatilities on Blue Line 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 Blue Line with a short position of Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Line and Bridger Aerospace.
Diversification Opportunities for Blue Line and Bridger Aerospace
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and Bridger is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Blue Line Protection and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace and Blue Line 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 Blue Line Protection 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 Blue Line i.e., Blue Line and Bridger Aerospace go up and down completely randomly.
Pair Corralation between Blue Line and Bridger Aerospace
Given the investment horizon of 90 days Blue Line Protection is expected to generate 1.47 times more return on investment than Bridger Aerospace. However, Blue Line is 1.47 times more volatile than Bridger Aerospace Group. It trades about 0.01 of its potential returns per unit of risk. Bridger Aerospace Group is currently generating about -0.02 per unit of risk. If you would invest 11.00 in Blue Line Protection on August 28, 2024 and sell it today you would lose (4.33) from holding Blue Line Protection or give up 39.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Line Protection vs. Bridger Aerospace Group
Performance |
| Timeline |
| Blue Line Protection |
| Bridger Aerospace |
Blue Line and Bridger Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Line and Bridger Aerospace
The main advantage of trading using opposite Blue Line and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Line 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.| Blue Line vs. BIO Key International | Blue Line vs. LogicMark | Blue Line vs. Knightscope | Blue Line vs. Guardforce AI Co |
| Bridger Aerospace vs. Allegion PLC | Bridger Aerospace vs. MSA Safety | Bridger Aerospace vs. Resideo Technologies | Bridger Aerospace vs. NL Industries |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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