Correlation Between Bridger Aerospace and SSC Security

Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and SSC Security 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 Bridger Aerospace and SSC Security into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bridger Aerospace Group and SSC Security Services, you can compare the effects of market volatilities on Bridger Aerospace and SSC Security 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 Bridger Aerospace with a short position of SSC Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and SSC Security.

Diversification Opportunities for Bridger Aerospace and SSC Security

-0.2

Correlation Coefficient

Bridger Aerospace  SSC Security

Good diversification

The 3 months correlation between Bridger and SSC is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and SSC Security Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Security Services and Bridger Aerospace 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 Bridger Aerospace Group are associated (or correlated) with SSC Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Security Services has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and SSC Security go up and down completely randomly.

Pair Corralation between Bridger Aerospace and SSC Security

Given the investment horizon of 90 days Bridger Aerospace Group is expected to under-perform the SSC Security. In addition to that, Bridger Aerospace is 1.06 times more volatile than SSC Security Services. It trades about -0.03 of its total potential returns per unit of risk. SSC Security Services is currently generating about 0.03 per unit of volatility. If you would invest  184.00  in SSC Security Services on September 23, 2024 and sell it today you would lose (3.00) from holding SSC Security Services or give up 1.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bridger Aerospace Group  vs.  SSC Security Services

Bridger Aerospace

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bridger Aerospace Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Bridger Aerospace is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

SSC Security Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SSC Security Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SSC Security is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bridger Aerospace and SSC Security

The main advantage of trading using opposite Bridger Aerospace and SSC Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, SSC Security 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 SSC Security will offset losses from the drop in SSC Security's long position.

The idea behind Bridger Aerospace Group and SSC Security Services pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.