Correlation Between NYSE Composite and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Bridger Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Bridger Aerospace Group, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Bridger Aerospace.
Diversification Opportunities for NYSE Composite and Bridger Aerospace
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Bridger is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Bridger Aerospace go up and down completely randomly.
Pair Corralation between NYSE Composite and Bridger Aerospace
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.16 times more return on investment than Bridger Aerospace. However, NYSE Composite is 6.44 times less risky than Bridger Aerospace. It trades about 0.24 of its potential returns per unit of risk. Bridger Aerospace Group is currently generating about -0.18 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Bridger Aerospace Group
Performance |
| Timeline |
NYSE Composite and Bridger Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Bridger Aerospace Group
Pair trading matchups for Bridger Aerospace
Pair Trading with NYSE Composite and Bridger Aerospace
The main advantage of trading using opposite NYSE Composite and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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