Correlation Between Brinker International and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both Brinker International 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 Brinker International and Bridger Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brinker International and Bridger Aerospace Group, you can compare the effects of market volatilities on Brinker International 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 Brinker International with a short position of Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and Bridger Aerospace.
Diversification Opportunities for Brinker International and Bridger Aerospace
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brinker and Bridger is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Brinker 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 Brinker International 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 Brinker 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 Brinker International i.e., Brinker International and Bridger Aerospace go up and down completely randomly.
Pair Corralation between Brinker International and Bridger Aerospace
Considering the 90-day investment horizon Brinker International is expected to generate 0.41 times more return on investment than Bridger Aerospace. However, Brinker International is 2.46 times less risky than Bridger Aerospace. It trades about 0.19 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 7,161 in Brinker International on September 1, 2024 and sell it today you would earn a total of 6,066 from holding Brinker International or generate 84.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brinker International vs. Bridger Aerospace Group
Performance |
| Timeline |
| Brinker International |
| Bridger Aerospace |
Brinker International and Bridger Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brinker International and Bridger Aerospace
The main advantage of trading using opposite Brinker International and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinker International 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.| Brinker International vs. Dennys Corp | Brinker International vs. Bloomin Brands | Brinker International vs. Jack In The | Brinker International vs. Dine Brands Global |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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