Correlation Between Aerofoam Metals and Bridgford Foods
Can any of the company-specific risk be diversified away by investing in both Aerofoam Metals and Bridgford Foods 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 Aerofoam Metals and Bridgford Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerofoam Metals and Bridgford Foods, you can compare the effects of market volatilities on Aerofoam Metals and Bridgford Foods 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 Aerofoam Metals with a short position of Bridgford Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerofoam Metals and Bridgford Foods.
Diversification Opportunities for Aerofoam Metals and Bridgford Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aerofoam and Bridgford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aerofoam Metals and Bridgford Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgford Foods and Aerofoam Metals 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 Aerofoam Metals are associated (or correlated) with Bridgford Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgford Foods has no effect on the direction of Aerofoam Metals i.e., Aerofoam Metals and Bridgford Foods go up and down completely randomly.
Pair Corralation between Aerofoam Metals and Bridgford Foods
If you would invest 886.00 in Bridgford Foods on August 25, 2024 and sell it today you would earn a total of 37.00 from holding Bridgford Foods or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aerofoam Metals vs. Bridgford Foods
Performance |
| Timeline |
| Aerofoam Metals |
| Bridgford Foods |
Aerofoam Metals and Bridgford Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerofoam Metals and Bridgford Foods
The main advantage of trading using opposite Aerofoam Metals and Bridgford Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerofoam Metals position performs unexpectedly, Bridgford Foods 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 Bridgford Foods will offset losses from the drop in Bridgford Foods' long position.| Aerofoam Metals vs. Red Branch Technologies | Aerofoam Metals vs. NETGEAR | Aerofoam Metals vs. Western Digital | Aerofoam Metals vs. Asure Software |
| Bridgford Foods vs. Bellring Brands LLC | Bridgford Foods vs. Ingredion Incorporated | Bridgford Foods vs. JM Smucker | Bridgford Foods vs. John B Sanfilippo |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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