Correlation Between Core One and Bridger Aerospace

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

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

Diversification Opportunities for Core One and Bridger Aerospace

-0.42

Correlation Coefficient

Core One  Bridger Aerospace

Very good diversification

The 3 months correlation between Core and Bridger is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Core One Labs and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace and Core One 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 Core One Labs 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 Core One i.e., Core One and Bridger Aerospace go up and down completely randomly.

Pair Corralation between Core One and Bridger Aerospace

Assuming the 90 days horizon Core One Labs is expected to generate 29.1 times more return on investment than Bridger Aerospace. However, Core One is 29.1 times more volatile than Bridger Aerospace Group. It trades about 0.25 of its potential returns per unit of risk. Bridger Aerospace Group is currently generating about 0.09 per unit of risk. If you would invest  4.52  in Core One Labs on May 1, 2025 and sell it today you would earn a total of  1.48  from holding Core One Labs or generate 32.74% return on investment over 90 days.

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

Core One Labs  vs.  Bridger Aerospace Group

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 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental drivers, Core One reported solid returns over the last few months and may actually be approaching a breakup point.

Bridger Aerospace

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bridger Aerospace Group are ranked lower than 6 (%) 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 Core One and Bridger Aerospace

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

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.