Correlation Between Evolv Technologies and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both Evolv Technologies 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 Evolv Technologies and Bridger Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolv Technologies Holdings and Bridger Aerospace Group, you can compare the effects of market volatilities on Evolv Technologies 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 Evolv Technologies with a short position of Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolv Technologies and Bridger Aerospace.
Diversification Opportunities for Evolv Technologies and Bridger Aerospace
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evolv and Bridger is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Evolv Technologies Holdings and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace and Evolv Technologies 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 Evolv Technologies Holdings 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 Evolv Technologies i.e., Evolv Technologies and Bridger Aerospace go up and down completely randomly.
Pair Corralation between Evolv Technologies and Bridger Aerospace
Given the investment horizon of 90 days Evolv Technologies Holdings is expected to generate 1.27 times more return on investment than Bridger Aerospace. However, Evolv Technologies is 1.27 times more volatile than Bridger Aerospace Group. It trades about 0.5 of its potential returns per unit of risk. Bridger Aerospace Group is currently generating about -0.21 per unit of risk. If you would invest 237.00 in Evolv Technologies Holdings on September 2, 2024 and sell it today you would earn a total of 168.00 from holding Evolv Technologies Holdings or generate 70.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolv Technologies Holdings vs. Bridger Aerospace Group
Performance |
| Timeline |
| Evolv Technologies |
| Bridger Aerospace |
Evolv Technologies and Bridger Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolv Technologies and Bridger Aerospace
The main advantage of trading using opposite Evolv Technologies and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolv Technologies 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.| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
| Bridger Aerospace vs. Knowles Cor | Bridger Aerospace vs. Ubiquiti Networks | Bridger Aerospace vs. AmpliTech Group | Bridger Aerospace vs. Viavi Solutions |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |