After the Demons put in a "better effort than last week" before eventually succumbing to the Saints by 20 points at Etihad Stadium, Bailey said his side lacked the composure going forward and creativity from the back half that Davey would usually provide.
"It's probably a question you don't want to answer straight after the game because of the emotions involved," he said when asked about Davey returning to Melbourne's VFL affiliate, Casey Scorpions.
"We will sit down and see where Aaron fits best, whether it's playing on the half-back flank for us or maybe changing his position."
The defender had a nightmare against the Saints, giving away a crucial 50m penalty that resulted in a goal to Nick Riewoldt. The 27-year old threw the ball to his teammate Joel Macdonald when the free kick was paid to the St Kilda captain.
Davey also had a moment to forget during the second term, missing an uncontested mark in St Kilda's forward 50 that lead to a goal to his opponent Clint Jones, who had much the better of the duel in restricting the Demon defender to just nine possessions for the match.
Bailey admitted the incident reflected Davey's loss of confidence and said the close attention he is receiving from opponents in the absence of injured defenders Colin Garland, Rohan Bail and Jack Grimes is also a contributing factor to his poor form.
"I don't think it's a highlight any player would want to have but it's probably confidence," Bailey said in response to the incident.
"He got closely tagged today on the half-back flank but he didn't play well. Aaron would be the first one to sit here and say ‘I didn't perform at the level I should’. He is pretty honest with his assessment."
The loss means the Demons have lost their past six games against the Saints and their previous ten matches at Etihad Stadium under the guidance of Bailey.
Further compounding the loss was the serious hamstring injury sustained by promising defender Luke Tapscott early in the opening term.
But despite the mounting injury list and loss to the Saints, Bailey said he did see signs the Demons "rollercoaster" season may be starting to even out.
"Last week it was good for a quarter and a bit but not for the whole game and this week we were a little bit more even, more consistent with effort," he said.
"I thought even though we turned the ball over, at least we tried to make the game and get on with creating some play. I thought that was a better sign."
Bailey also praised the performance of Jack Watts, with the 20-year old enjoying a new lease of life as he finds himself spending more time in the midfield and down back helping out the undermanned Demon defense.
"We are adding a bit of versatility to him," Bailey said.
"His game is developing, he just needs to keep improving and be consistent."
The Demons task does not get any easier next week, with a clash next Friday night against Carlton at the MCG.
