Correlation Between Kimball Electronics and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both Kimball Electronics 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 Kimball Electronics and Bridger Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kimball Electronics and Bridger Aerospace Group, you can compare the effects of market volatilities on Kimball Electronics 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 Kimball Electronics with a short position of Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimball Electronics and Bridger Aerospace.
Diversification Opportunities for Kimball Electronics and Bridger Aerospace
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kimball and Bridger is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kimball Electronics and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace and Kimball Electronics 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 Kimball Electronics 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 Kimball Electronics i.e., Kimball Electronics and Bridger Aerospace go up and down completely randomly.
Pair Corralation between Kimball Electronics and Bridger Aerospace
Allowing for the 90-day total investment horizon Kimball Electronics is expected to generate 13.78 times less return on investment than Bridger Aerospace. But when comparing it to its historical volatility, Kimball Electronics is 2.91 times less risky than Bridger Aerospace. It trades about 0.03 of its potential returns per unit of risk. Bridger Aerospace Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 128.00 in Bridger Aerospace Group on May 7, 2025 and sell it today you would earn a total of 61.00 from holding Bridger Aerospace Group or generate 47.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kimball Electronics vs. Bridger Aerospace Group
Performance |
Timeline |
Kimball Electronics |
Bridger Aerospace |
Kimball Electronics and Bridger Aerospace Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kimball Electronics and Bridger Aerospace
The main advantage of trading using opposite Kimball Electronics and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimball Electronics 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.Kimball Electronics vs. Optical Cable | Kimball Electronics vs. KVH Industries | Kimball Electronics vs. Knowles Cor | Kimball Electronics vs. Comtech Telecommunications Corp |
Bridger Aerospace vs. Allegion PLC | Bridger Aerospace vs. MSA Safety | Bridger Aerospace vs. Resideo Technologies | Bridger Aerospace vs. NL Industries |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |