Correlation Between Bridger Aerospace and DEFSEC Technologies
Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and DEFSEC Technologies 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 DEFSEC Technologies 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 DEFSEC Technologies, you can compare the effects of market volatilities on Bridger Aerospace and DEFSEC Technologies 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 DEFSEC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and DEFSEC Technologies.
Diversification Opportunities for Bridger Aerospace and DEFSEC Technologies
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bridger and DEFSEC is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and DEFSEC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEFSEC Technologies 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 DEFSEC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEFSEC Technologies has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and DEFSEC Technologies go up and down completely randomly.
Pair Corralation between Bridger Aerospace and DEFSEC Technologies
Given the investment horizon of 90 days Bridger Aerospace Group is expected to generate 0.53 times more return on investment than DEFSEC Technologies. However, Bridger Aerospace Group is 1.88 times less risky than DEFSEC Technologies. It trades about 0.02 of its potential returns per unit of risk. DEFSEC Technologies is currently generating about 0.01 per unit of risk. If you would invest 191.00 in Bridger Aerospace Group on August 19, 2025 and sell it today you would lose (1.00) from holding Bridger Aerospace Group or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Bridger Aerospace Group vs. DEFSEC Technologies
Performance |
| Timeline |
| Bridger Aerospace |
| DEFSEC Technologies |
Bridger Aerospace and DEFSEC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridger Aerospace and DEFSEC Technologies
The main advantage of trading using opposite Bridger Aerospace and DEFSEC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridger Aerospace position performs unexpectedly, DEFSEC Technologies 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 DEFSEC Technologies will offset losses from the drop in DEFSEC Technologies' long position.| Bridger Aerospace vs. Lightbridge Corp | Bridger Aerospace vs. T1 Energy | Bridger Aerospace vs. Genco Shipping Trading | Bridger Aerospace vs. Transcat |
| DEFSEC Technologies vs. SUNation Energy | DEFSEC Technologies vs. Expion360 | DEFSEC Technologies vs. Astrotech Corp | DEFSEC Technologies vs. Erayak Power Solution |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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