Correlation Between Iveda Solutions and Bridger Aerospace

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

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

Diversification Opportunities for Iveda Solutions and Bridger Aerospace

-0.27

Correlation Coefficient

Iveda Solutions  Bridger Aerospace

Very good diversification

The 3 months correlation between Iveda and Bridger is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace and Iveda Solutions 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 Iveda Solutions 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 Iveda Solutions i.e., Iveda Solutions and Bridger Aerospace go up and down completely randomly.

Pair Corralation between Iveda Solutions and Bridger Aerospace

Given the investment horizon of 90 days Iveda Solutions is expected to under-perform the Bridger Aerospace. In addition to that, Iveda Solutions is 1.03 times more volatile than Bridger Aerospace Group. It trades about -0.06 of its total potential returns per unit of risk. Bridger Aerospace Group is currently generating about 0.07 per unit of volatility. If you would invest  234.00  in Bridger Aerospace Group on August 31, 2024 and sell it today you would earn a total of  38.00  from holding Bridger Aerospace Group or generate 16.24% return on investment over 90 days.

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

Iveda Solutions  vs.  Bridger Aerospace Group

Iveda Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Iveda Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Bridger Aerospace

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bridger Aerospace Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Bridger Aerospace reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Iveda Solutions and Bridger Aerospace

The main advantage of trading using opposite Iveda Solutions and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions 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.

The idea behind Iveda Solutions and Bridger Aerospace Group 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.