Correlation Between Bridger Aerospace and Core One

Can any of the company-specific risk be diversified away by investing in both Bridger Aerospace and Core One 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 Core One 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 Core One Labs, you can compare the effects of market volatilities on Bridger Aerospace and Core One 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 Core One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridger Aerospace and Core One.

Diversification Opportunities for Bridger Aerospace and Core One

-0.53

Correlation Coefficient

Bridger Aerospace  Core One

Excellent diversification

The 3 months correlation between Bridger and Core is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bridger Aerospace Group and Core One Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core One Labs 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 Core One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core One Labs has no effect on the direction of Bridger Aerospace i.e., Bridger Aerospace and Core One go up and down completely randomly.

Pair Corralation between Bridger Aerospace and Core One

Given the investment horizon of 90 days Bridger Aerospace is expected to generate 74.68 times less return on investment than Core One. But when comparing it to its historical volatility, Bridger Aerospace Group is 29.88 times less risky than Core One. It trades about 0.09 of its potential returns per unit of risk. Core One Labs is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  4.01  in Core One Labs on May 10, 2025 and sell it today you would lose (1.79) from holding Core One Labs or give up 44.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Bridger Aerospace Group  vs.  Core One Labs

Bridger Aerospace

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Bridger Aerospace Group are ranked lower than 7 (%) 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.

Core One Labs

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Core One Labs are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental drivers, Core One reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bridger Aerospace and Core One

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

The idea behind Bridger Aerospace Group and Core One Labs 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.